SCHCLAREK CURUTCHET ALFREDO
Congresos y reuniones científicas
Título:
The Maturity Lengthening Role of National Development Banks
Autor/es:
ALFREDO SCHCLAREK; JIAJUN XU; JIANYE YAN
Lugar:
Beijing
Reunión:
Conferencia; The 6th International Conference on NSE; 2019
Institución organizadora:
Institute of New Structural Economics (INSE) at Peking University
Resumen:
This paper theoretically discusses why state-owned national development banks (NDBs) may be better able to provide longer-term lending to firms (investors), in comparison to private commercial banks (PCBs). NDBs can grant longer-term lending to firms (investors) because NDB bonds have more value than the bonds issued by PCBs, thus allowing banks to better cope with maturity mismatch risks and liquidity problems in case of needing to make interbank payments. The reason that NDB bonds have more value than the bonds issued by PCBs is that NDBs are owned by the government, hence there is a higher recapitalization willingness and capacity compared to private bank owners. However, we also model the effects of monitoring quality on the value of bonds. If PCBs have a higher monitoring quality than NDB, the advantage of NDBs, in terms of being able to lend longer-term, is reduced. Furthermore, we also consider the market liquidity of bonds in evaluating their value.