Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe
This paper examines the impact of bank ownership on credit growth in developing countries before and during the 2008-2009 crisis. Using bank-level data for countries in Eastern Europe and Latin America, it analyzes the growth of banks' total g...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16725192/bank-ownership-lending-patterns-during-2008-2009-financial-crisis-evidence-latin-america-eastern-europe http://hdl.handle.net/10986/12035 |
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okr-10986-12035 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AFFILIATES ASSET RATIO ASSETS RATIO BANK ACCESS BANK ASSET BANK ASSETS BANK BEHAVIOR BANK CREDIT BANK EQUITY BANK INTERMEDIATION BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK OF GREECE BANK POLICY BANK PROFITABILITY BANK PROFITS BANK REGULATION BANK SIZE BANKING CORPORATION BANKING CRISIS BANKING INDUSTRY BANKING SECTOR BANKING SECTOR OUTREACH BANKING SECTORS BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEM ASSETS BANKING SYSTEMS BANKS BUDGET SURPLUS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CENTRAL BANK CHECKS COLLAPSE CONSOLIDATION CONSUMER LOAN CONSUMER LOANS CORPORATION BANK CREDIT BANK CREDIT CRUNCH CREDIT GROWTH CREDIT LEVELS CRISIS LENDING CURRENCY UNITS DEFICITS DEPENDENT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC PROBLEMS ECONOMIES IN TRANSITION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY RATIO EQUITY RATIOS EXCHANGE RATE EXPRESS LOANS EXTERNAL FINANCE FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL GLOBALIZATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICITS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN CURRENCIES FOREIGN OWNERSHIP GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT DEFICITS GOVERNMENT OWNERSHIP HOLDING HOLDINGS HOST COUNTRIES HOST COUNTRY INITIATIVE INTERMEDIATION SPREADS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT BANK LARGE BANKS LENDERS LIQUID ASSETS LIQUIDITY RATIO LIQUIDITY×CRISIS LLC LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN VOLUMES LOCAL CURRENCY LOCAL GOVERNMENTS MARKET FAILURES MONETARY FUND MONETARY POLICY MORTGAGE LOAN MORTGAGE LOANS MULTINATIONAL MULTINATIONAL BANK MULTINATIONAL BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PERSONAL FINANCE POLITICIANS POSITIVE COEFFICIENTS PRIVATE BANK PRIVATE BANKS PRIVATE BORROWERS PROFITABILITY PRUDENTIAL REGULATION PUBLIC-PRIVATE PARTNERSHIP RESIDENTIAL LOAN RESIDENTIAL MORTGAGE RESIDENTIAL MORTGAGES RETURN RETURN ON ASSETS ROLE OF BANK SAVINGS SAVINGS BANK SHARE OF ASSETS SHARE OF BANK ASSETS SHAREHOLDERS SOLVENCY SOLVENT SOLVENT BANKS SUBSIDIARIES SUBSIDIARY SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC STABILITY TERMS OF CREDIT TRADE CREDIT UNION WHOLESALE FUNDING |
| spellingShingle |
ACCOUNTING AFFILIATES ASSET RATIO ASSETS RATIO BANK ACCESS BANK ASSET BANK ASSETS BANK BEHAVIOR BANK CREDIT BANK EQUITY BANK INTERMEDIATION BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK OF GREECE BANK POLICY BANK PROFITABILITY BANK PROFITS BANK REGULATION BANK SIZE BANKING CORPORATION BANKING CRISIS BANKING INDUSTRY BANKING SECTOR BANKING SECTOR OUTREACH BANKING SECTORS BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEM ASSETS BANKING SYSTEMS BANKS BUDGET SURPLUS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CENTRAL BANK CHECKS COLLAPSE CONSOLIDATION CONSUMER LOAN CONSUMER LOANS CORPORATION BANK CREDIT BANK CREDIT CRUNCH CREDIT GROWTH CREDIT LEVELS CRISIS LENDING CURRENCY UNITS DEFICITS DEPENDENT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC PROBLEMS ECONOMIES IN TRANSITION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY RATIO EQUITY RATIOS EXCHANGE RATE EXPRESS LOANS EXTERNAL FINANCE FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL GLOBALIZATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICITS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN CURRENCIES FOREIGN OWNERSHIP GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT DEFICITS GOVERNMENT OWNERSHIP HOLDING HOLDINGS HOST COUNTRIES HOST COUNTRY INITIATIVE INTERMEDIATION SPREADS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT BANK LARGE BANKS LENDERS LIQUID ASSETS LIQUIDITY RATIO LIQUIDITY×CRISIS LLC LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN VOLUMES LOCAL CURRENCY LOCAL GOVERNMENTS MARKET FAILURES MONETARY FUND MONETARY POLICY MORTGAGE LOAN MORTGAGE LOANS MULTINATIONAL MULTINATIONAL BANK MULTINATIONAL BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PERSONAL FINANCE POLITICIANS POSITIVE COEFFICIENTS PRIVATE BANK PRIVATE BANKS PRIVATE BORROWERS PROFITABILITY PRUDENTIAL REGULATION PUBLIC-PRIVATE PARTNERSHIP RESIDENTIAL LOAN RESIDENTIAL MORTGAGE RESIDENTIAL MORTGAGES RETURN RETURN ON ASSETS ROLE OF BANK SAVINGS SAVINGS BANK SHARE OF ASSETS SHARE OF BANK ASSETS SHAREHOLDERS SOLVENCY SOLVENT SOLVENT BANKS SUBSIDIARIES SUBSIDIARY SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC STABILITY TERMS OF CREDIT TRADE CREDIT UNION WHOLESALE FUNDING Cull, Robert Martínez Pería, María Soledad Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| geographic_facet |
Europe and Central Asia Latin America & Caribbean |
| relation |
Policy Research Working Paper; No. 6195 |
| description |
This paper examines the impact of bank
ownership on credit growth in developing countries before
and during the 2008-2009 crisis. Using bank-level data for
countries in Eastern Europe and Latin America, it analyzes
the growth of banks' total gross loans as well as the
growth of corporate, consumer, and residential mortgage
loans. Although domestic private banks in Eastern Europe and
Latin America contracted their loan growth rates during the
crisis, there are differences in foreign and
government-owned bank credit growth across regions. In
Eastern Europe, foreign bank total lending fell by more than
domestic private bank credit. These results are primarily
driven by reductions in corporate loans. Furthermore,
government-owned banks in Eastern Europe did not act
counter-cyclically. The opposite was true in Latin America,
where the growth of government-owned banks' corporate
and consumer loans during the crisis exceeded that of
domestic and foreign banks. Contrary to the case of foreign
banks in Eastern Europe, those in Latin America did not fuel
loan growth prior to the crisis and did not contract lending
at a faster pace than domestic banks during the crisis. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Cull, Robert Martínez Pería, María Soledad |
| author_facet |
Cull, Robert Martínez Pería, María Soledad |
| author_sort |
Cull, Robert |
| title |
Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| title_short |
Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| title_full |
Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| title_fullStr |
Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| title_full_unstemmed |
Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe |
| title_sort |
bank ownership and lending patterns during the 2008-2009 financial crisis : evidence from latin america and eastern europe |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/09/16725192/bank-ownership-lending-patterns-during-2008-2009-financial-crisis-evidence-latin-america-eastern-europe http://hdl.handle.net/10986/12035 |
| _version_ |
1764418805767864320 |
| spelling |
okr-10986-120352021-04-23T14:02:59Z Bank Ownership and Lending Patterns during the 2008-2009 Financial Crisis : Evidence from Latin America and Eastern Europe Cull, Robert Martínez Pería, María Soledad ACCOUNTING AFFILIATES ASSET RATIO ASSETS RATIO BANK ACCESS BANK ASSET BANK ASSETS BANK BEHAVIOR BANK CREDIT BANK EQUITY BANK INTERMEDIATION BANK LENDING BANK LIQUIDITY BANK LOAN BANK LOANS BANK OF GREECE BANK POLICY BANK PROFITABILITY BANK PROFITS BANK REGULATION BANK SIZE BANKING CORPORATION BANKING CRISIS BANKING INDUSTRY BANKING SECTOR BANKING SECTOR OUTREACH BANKING SECTORS BANKING SERVICES BANKING STRUCTURE BANKING SYSTEM BANKING SYSTEM ASSETS BANKING SYSTEMS BANKS BUDGET SURPLUS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL MARKETS CAPITALIZATION CENTRAL BANK CHECKS COLLAPSE CONSOLIDATION CONSUMER LOAN CONSUMER LOANS CORPORATION BANK CREDIT BANK CREDIT CRUNCH CREDIT GROWTH CREDIT LEVELS CRISIS LENDING CURRENCY UNITS DEFICITS DEPENDENT DEPOSIT DEPOSITS DEVELOPING COUNTRIES DOMESTIC BANK DOMESTIC BANKS DUMMY VARIABLE DUMMY VARIABLES ECONOMIC GROWTH ECONOMIC POLICY ECONOMIC PROBLEMS ECONOMIES IN TRANSITION EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY RATIO EQUITY RATIOS EXCHANGE RATE EXPRESS LOANS EXTERNAL FINANCE FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF BOSTON FEDERAL RESERVE BANK OF NEW YORK FINANCIAL CONSTRAINTS FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL DISTRESS FINANCIAL GLOBALIZATION FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTEGRATION FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL SUPPORT FINANCIAL SYSTEMS FIRM PERFORMANCE FISCAL DEFICITS FOREIGN BANK FOREIGN BANK ENTRY FOREIGN BANK PARTICIPATION FOREIGN BANKS FOREIGN CURRENCIES FOREIGN OWNERSHIP GOVERNMENT BANK GOVERNMENT BANKS GOVERNMENT DEFICITS GOVERNMENT OWNERSHIP HOLDING HOLDINGS HOST COUNTRIES HOST COUNTRY INITIATIVE INTERMEDIATION SPREADS INTERNATIONAL BANK INTERNATIONAL BANKS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INSTITUTIONS INVESTMENT BANK LARGE BANKS LENDERS LIQUID ASSETS LIQUIDITY RATIO LIQUIDITY×CRISIS LLC LOAN LOAN AMOUNTS LOAN PORTFOLIO LOAN PORTFOLIOS LOAN VOLUMES LOCAL CURRENCY LOCAL GOVERNMENTS MARKET FAILURES MONETARY FUND MONETARY POLICY MORTGAGE LOAN MORTGAGE LOANS MULTINATIONAL MULTINATIONAL BANK MULTINATIONAL BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PERSONAL FINANCE POLITICIANS POSITIVE COEFFICIENTS PRIVATE BANK PRIVATE BANKS PRIVATE BORROWERS PROFITABILITY PRUDENTIAL REGULATION PUBLIC-PRIVATE PARTNERSHIP RESIDENTIAL LOAN RESIDENTIAL MORTGAGE RESIDENTIAL MORTGAGES RETURN RETURN ON ASSETS ROLE OF BANK SAVINGS SAVINGS BANK SHARE OF ASSETS SHARE OF BANK ASSETS SHAREHOLDERS SOLVENCY SOLVENT SOLVENT BANKS SUBSIDIARIES SUBSIDIARY SUPPLY OF CREDIT SYSTEMIC CRISES SYSTEMIC STABILITY TERMS OF CREDIT TRADE CREDIT UNION WHOLESALE FUNDING This paper examines the impact of bank ownership on credit growth in developing countries before and during the 2008-2009 crisis. Using bank-level data for countries in Eastern Europe and Latin America, it analyzes the growth of banks' total gross loans as well as the growth of corporate, consumer, and residential mortgage loans. Although domestic private banks in Eastern Europe and Latin America contracted their loan growth rates during the crisis, there are differences in foreign and government-owned bank credit growth across regions. In Eastern Europe, foreign bank total lending fell by more than domestic private bank credit. These results are primarily driven by reductions in corporate loans. Furthermore, government-owned banks in Eastern Europe did not act counter-cyclically. The opposite was true in Latin America, where the growth of government-owned banks' corporate and consumer loans during the crisis exceeded that of domestic and foreign banks. Contrary to the case of foreign banks in Eastern Europe, those in Latin America did not fuel loan growth prior to the crisis and did not contract lending at a faster pace than domestic banks during the crisis. 2013-01-02T20:08:19Z 2013-01-02T20:08:19Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16725192/bank-ownership-lending-patterns-during-2008-2009-financial-crisis-evidence-latin-america-eastern-europe http://hdl.handle.net/10986/12035 English en_US Policy Research Working Paper; No. 6195 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Latin America & Caribbean |