Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5090207 | Journal of Banking & Finance | 2010 | 5 Pages |
Abstract
In this paper we develop a theoretical model with a representative bank whose ownership is shared between state and private sector. The bank faces a risk of failure and provides private and public explicit deposit insurance. Banks owned to a larger extent by the government are more able to counteract a restrictive monetary policy because of their capacity to raise additional volume of deposits. Therefore, the greater the state's share in the bank ownership, the less the impact of a monetary tightening on the level of loan supply.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Natalia Andries, Steve Billon,