The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean

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This paper investigates empirically the cyclical lending patterns of national development banks. To this purpose, we compare the lending activity of national development banks, across crisis and normal times, with that of public, foreign and domestic private banks using information on the annual fin...

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Autores principales: Brei, Michael, Schclarek Curutchet, Alfredo
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2018
Materias:
Ciencias Económicas
bank lending
national development banks
countercyclical behavior
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/165496
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SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-165496
record_format dspace
spelling I19-R120-10915-1654962024-04-30T20:01:52Z http://sedici.unlp.edu.ar/handle/10915/165496 The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean Brei, Michael Schclarek Curutchet, Alfredo 2018-11 2018 2024-04-30T14:36:09Z en Ciencias Económicas bank lending national development banks countercyclical behavior This paper investigates empirically the cyclical lending patterns of national development banks. To this purpose, we compare the lending activity of national development banks, across crisis and normal times, with that of public, foreign and domestic private banks using information on the annual financial statements of 336 major banks from 31 Latin American and Caribbean countries over the period of 1995- 2014. Using dynamic panel regressions that allow controlling for loan demand and other factors, we find robust evidence that national development and public retail-oriented banks have counteracted the slowdown in the lending activity of private banks during crises by significantly increasing their provision of loans. Our results are particularly important when considering productive lending to the corporate sector. The findings suggest that governments have played an active countercyclical role in their banking systems directly through both national development and retail-oriented public banks. Certainly, national development banks’ size, governance structure and financial condition play a key role in determining that the countercyclical response is effective in mitigating the macroeconomic effects of financial turmoil. In addition, it is important that special and innovative credit lines are designed in line with the specific needs of companies in times of crisis. Moreover, credit lines for infrastructure projects that increase the countries’ productive and export capabilities are also advisable. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
bank lending
national development banks
countercyclical behavior
spellingShingle Ciencias Económicas
bank lending
national development banks
countercyclical behavior
Brei, Michael
Schclarek Curutchet, Alfredo
The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
topic_facet Ciencias Económicas
bank lending
national development banks
countercyclical behavior
description This paper investigates empirically the cyclical lending patterns of national development banks. To this purpose, we compare the lending activity of national development banks, across crisis and normal times, with that of public, foreign and domestic private banks using information on the annual financial statements of 336 major banks from 31 Latin American and Caribbean countries over the period of 1995- 2014. Using dynamic panel regressions that allow controlling for loan demand and other factors, we find robust evidence that national development and public retail-oriented banks have counteracted the slowdown in the lending activity of private banks during crises by significantly increasing their provision of loans. Our results are particularly important when considering productive lending to the corporate sector. The findings suggest that governments have played an active countercyclical role in their banking systems directly through both national development and retail-oriented public banks. Certainly, national development banks’ size, governance structure and financial condition play a key role in determining that the countercyclical response is effective in mitigating the macroeconomic effects of financial turmoil. In addition, it is important that special and innovative credit lines are designed in line with the specific needs of companies in times of crisis. Moreover, credit lines for infrastructure projects that increase the countries’ productive and export capabilities are also advisable.
format Objeto de conferencia
Objeto de conferencia
author Brei, Michael
Schclarek Curutchet, Alfredo
author_facet Brei, Michael
Schclarek Curutchet, Alfredo
author_sort Brei, Michael
title The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
title_short The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
title_full The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
title_fullStr The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
title_full_unstemmed The Countercyclical Behavior of National Development Banks in Latin America and the Caribbean
title_sort countercyclical behavior of national development banks in latin america and the caribbean
publishDate 2018
url http://sedici.unlp.edu.ar/handle/10915/165496
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