Recent Trends in Bank Privatization
This paper revisits trends in bank privatization and analyzes their economic impact over the past 25 years. Building on a novel data set of privatization events for 70 developed and developing countries, it shows that bank privatization became more...
| Main Authors: | , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/347911594666821081/Recent-Trends-in-Bank-Privatization http://hdl.handle.net/10986/34127 |
| id |
okr-10986-34127 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-341272022-09-20T00:11:23Z Recent Trends in Bank Privatization Bertay, Ata Can Calice, Pietro Diaz Kalan, Federico Alfonso Masetti, Oliver PRIVATIZATION STATE-OWNED BANKS FINANCIAL DEVELOPMENT PUBLIC ECONOMICS DECENTRALIZATION FINANCIAL CRISIS BANK PROFITABILITY EMERGING MARKET ECONOMIES This paper revisits trends in bank privatization and analyzes their economic impact over the past 25 years. Building on a novel data set of privatization events for 70 developed and developing countries, it shows that bank privatization became more frequent since the Global Financial Crisis, especially in emerging markets such as China and India, but also smaller in that the fraction of a bank's ownership relinquished during privatization events declined. The majority of privatizations happened via public sales in domestic capital markets. The banks that were chosen to be privatized tended to underperform their peers and had weaker asset quality pre-privatization, but the empirical evidence on banks' post-privatization performance is mixed. The paper finds that privatized banks turn toward more traditional banking models and increase credit extension with no apparent negative distributional implications. However, the analysis does not reveal significant differences in bank profitability post-privatization, although differences exist between developed and developing countries. Notably, banks that have been recapitalized prior to privatization perform significantly better afterward privatization. 2020-07-16T16:30:25Z 2020-07-16T16:30:25Z 2020-07 Working Paper http://documents.worldbank.org/curated/en/347911594666821081/Recent-Trends-in-Bank-Privatization http://hdl.handle.net/10986/34127 English Policy Research Working Paper;No. 9318 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific South Asia China India |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PRIVATIZATION STATE-OWNED BANKS FINANCIAL DEVELOPMENT PUBLIC ECONOMICS DECENTRALIZATION FINANCIAL CRISIS BANK PROFITABILITY EMERGING MARKET ECONOMIES |
| spellingShingle |
PRIVATIZATION STATE-OWNED BANKS FINANCIAL DEVELOPMENT PUBLIC ECONOMICS DECENTRALIZATION FINANCIAL CRISIS BANK PROFITABILITY EMERGING MARKET ECONOMIES Bertay, Ata Can Calice, Pietro Diaz Kalan, Federico Alfonso Masetti, Oliver Recent Trends in Bank Privatization |
| geographic_facet |
East Asia and Pacific South Asia China India |
| relation |
Policy Research Working Paper;No. 9318 |
| description |
This paper revisits trends in bank
privatization and analyzes their economic impact over the
past 25 years. Building on a novel data set of privatization
events for 70 developed and developing countries, it shows
that bank privatization became more frequent since the
Global Financial Crisis, especially in emerging markets such
as China and India, but also smaller in that the fraction of
a bank's ownership relinquished during privatization
events declined. The majority of privatizations happened via
public sales in domestic capital markets. The banks that
were chosen to be privatized tended to underperform their
peers and had weaker asset quality pre-privatization, but
the empirical evidence on banks' post-privatization
performance is mixed. The paper finds that privatized banks
turn toward more traditional banking models and increase
credit extension with no apparent negative distributional
implications. However, the analysis does not reveal
significant differences in bank profitability
post-privatization, although differences exist between
developed and developing countries. Notably, banks that have
been recapitalized prior to privatization perform
significantly better afterward privatization. |
| format |
Working Paper |
| author |
Bertay, Ata Can Calice, Pietro Diaz Kalan, Federico Alfonso Masetti, Oliver |
| author_facet |
Bertay, Ata Can Calice, Pietro Diaz Kalan, Federico Alfonso Masetti, Oliver |
| author_sort |
Bertay, Ata Can |
| title |
Recent Trends in Bank Privatization |
| title_short |
Recent Trends in Bank Privatization |
| title_full |
Recent Trends in Bank Privatization |
| title_fullStr |
Recent Trends in Bank Privatization |
| title_full_unstemmed |
Recent Trends in Bank Privatization |
| title_sort |
recent trends in bank privatization |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/347911594666821081/Recent-Trends-in-Bank-Privatization http://hdl.handle.net/10986/34127 |
| _version_ |
1764480368158703616 |