Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/212722
Authors: 
Fungáčová, Zuzana
Herrala, Risto
Weill, Laurent
Year of Publication: 
2011
Series/Report no.: 
BOFIT Discussion Papers No. 34/2011
Abstract: 
This study examines how bank ownership influenced the credit supply during the recent financial crisis in Russia, where the banking sector consists of a mix of state-controlled banks, foreign-owned banks, and domestic private banks. To estimate credit supply changes, we employ an exhaustive dataset for Russian banks that covers the crisis period and apply an original approach based on stochastic frontier analysis. Our findings suggest bank ownership affected credit supply during the financial crisis and that the crisis led to an overall decrease in the credit supply. Relative to domestic private banks foreign-owned banks reduced their credit supply more and state-controlled banks less. This supports the hypothesis that foreign banks have a "lack of loyalty" to domestic actors during a crisis, as well as the view that an objective function of state-controlled banks leads them to support the economy during economic downturns.
Subjects: 
bank
credit policy
foreign ownership
state ownership
stochastic frontier analysis
JEL: 
D14
G21
Persistent Identifier of the first edition: 
ISBN: 
978-952-462-729-0
Document Type: 
Working Paper

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