Article ID Journal Published Year Pages File Type
5087379 Journal of Asian Economics 2011 13 Pages PDF
Abstract
► We model whether state-owned banks offset private bank credit declines in the financial crisis. ► In the model, banks face adverse selection, regulatory costs, wholesale and traditional funding. ► Empirical tests show public banks offset procyclical private credit contraction. ► Wholesale funding is a short-term alternative that helped fund lending in the crisis. ► Wholesale funding does not appear to drive deteriorating credit conditions in Korea.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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