The Role of State Banks in the MENA Region
In Middle East and North Africa (MENA), state banks played a less important role in the recovery as compared to several countries in Latin America and South Asia, as well as China, where state banks played a counter-cyclical role. When private bank...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2010/07/12806355/role-state-banks-mena-region http://hdl.handle.net/10986/10922 |
| Summary: | In Middle East and North Africa (MENA),
state banks played a less important role in the recovery as
compared to several countries in Latin America and South
Asia, as well as China, where state banks played a
counter-cyclical role. When private banks started
circumscribing credit, state banks stepped in. The impact of
this counter-cyclical role has been widely acknowledged. For
example, a recent issue in the economist contained a lengthy
article on emerging country banking, acknowledging how state
banks had played an important counter-cyclical role in many
emerging countries. Given this recent experience, some MENA
countries may decide to retain an important role for state
banks, including reformist countries such as Egypt and
Tunisia that had been privatizing state banks and allowing
the entry of foreign banks over the last decade. |
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