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dc.contributor.authorRose, Andrew K.en_US
dc.contributor.authorWieladek, Tomaszen_US
dc.date.accessioned2011-05-31en_US
dc.date.accessioned2011-10-24T07:51:07Z-
dc.date.available2011-10-24T07:51:07Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/50646-
dc.description.abstractWe provide the first empirical tests for financial protectionism, defined as a nationalistic change in bank's lending behaviour, as the result of public intervention, which leads domestic banks either to lend less or at higher interest rates to foreigners. We use a bank-level panel data set spanning all British and foreign banks providing loans within the United Kingdom between 1997 Q3 and 2010 Q1. During this time, a number of banks were nationalised, privatised, given unusual access to loan or credit guarantees, or reseived capital injections. We use standard empirical panel-data techniques to study effective short-term interest rates, though our data set here ist much smaller. We examine the loan mix for both British and foreign banks, both before and after unusual public interventions such as nationalisations and public capital injections. We find strong evidence of financial protectionism. After nationalisations, foreign banks reduced the fraction of loans going to the United Kingdom by about 11 percentage points and increased their effective interest rates by about 70 basis boints. By way of contrast, nationalised British banks did not significantly change either their loan mix or effective interest rates. Succinctly, foreign nationalised banks seem to have engaged in financial protectionism, while British nationalised banks have not.en_US
dc.language.isoengen_US
dc.publisherBank of England, Monetary Policy Committee Londonen_US
dc.relation.ispartofseriesExternal MPC unit discussion paper 32en_US
dc.subject.jelF36en_US
dc.subject.jelG21en_US
dc.subject.ddc330en_US
dc.subject.keywordbanken_US
dc.subject.keywordnationalisationen_US
dc.subject.keywordprivatisationen_US
dc.subject.keywordcrisisen_US
dc.subject.keywordloanen_US
dc.subject.keyworddomesticen_US
dc.subject.keywordforeignen_US
dc.subject.keywordempiricalen_US
dc.subject.keywordpanelen_US
dc.subject.stwFinanzmarkten_US
dc.subject.stwBankgeschäften_US
dc.subject.stwKreditgeschäften_US
dc.subject.stwKapitalverkehrspolitiken_US
dc.subject.stwProtektionismusen_US
dc.subject.stwZinsen_US
dc.subject.stwGroßbritannienen_US
dc.titleFinancial protectionism: The first testsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn661057399en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:External MPC Unit Discussion Papers, Bank of England

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