State-owned commercial banks

Figures & data

Figure 1. Distribution of state-ownership shares.This figure plots the non-parametric distribution (Epanechnikov Kernel) of state ownership for all banks in which state ownership is at least 1%. The top left panel includes all the banks included in the dataset used in this paper, the top right panel only uses data for banks based in advanced economies, and the bottom panels use data for banks based in middle-income (MIC) and low-income (LIC) economies.

Figure 2. Share of state-owned banks.

Table 1. State-owned banks and financial depth (dep. var: credit to the private sector).

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
GOB	−0.195**	−0.036	−0.050	0.021	−0.236	0.052	−0.069	0.103
	(0.085)	(0.086)	(0.085)	(0.110)	(0.383)	(0.086)	(0.210)	(0.087)
ln(Y_PC)		0.211***	0.198***	0.230***	−0.049	0.128***	0.049	0.150***
		(0.022)	(0.024)	(0.024)	(0.206)	(0.018)	(0.048)	(0.051)
C Rights		0.032***	0.033***	0.031***	0.053***	0.021***	0.029***	0.020**
		(0.007)	(0.008)	(0.010)	(0.015)	(0.006)	(0.009)	(0.009)
ln(INFL)		−0.0001*	−0.0001*	−0.011***	−0.014	−0.0001**	−0.0001	−0.002**
		(0.00002)	(0.00002)	(0.003)	(0.022)	(0.00002)	(0.0001)	(0.001)
ENG		0.060	0.072	0.043	0.127	0.011	0.287*	−0.080
		(0.060)	(0.063)	(0.068)	(0.163)	(0.057)	(0.152)	(0.060)
GER		0.055	0.103	−0.057	0.248	0.064	0.213
		(0.121)	(0.130)	(0.112)	(0.228)	(0.104)	(0.148)
SCAND		0.245**	0.231	0.249**	0.048	0.245***
		(0.106)	(0.140)	(0.107)	(0.152)	(0.053)
SOC		−0.190***	−0.187***	−0.168***		−0.119***	−0.040	−0.117
		(0.041)	(0.040)	(0.054)		(0.040)	(0.068)	(0.071)
Const.	0.527***	−1.540***	−1.443***	−1.647***	1.407	−0.839***	−0.172	−0.980**
	(0.041)	(0.180)	(0.190)	(0.234)	(2.173)	(0.143)	(0.457)	(0.385)
N. Obs	3,646	3,029	2,079	950	532	2,497	1,012	764
R^2	0.016	0.485	0.489	0.473	0.196	0.302	0.257	0.324
Fixed effects regressions
GOB	−0.164***	−0.056	−0.097	−0.002	−0.128	−0.065*	−0.048	−0.002
	(0.050)	(0.051)	(0.065)	(0.040)	(0.268)	(0.039)	(0.052)	(0.064)
ln(GDP PC)		0.227***	0.165***	−0.072	−0.070	0.271***	0.324***	0.220***
		(0.041)	(0.052)	(0.137)	(0.401)	(0.037)	(0.074)	(0.059)
C Rights		0.020***	0.023***	0.003	0.061***	0.008**	0.007*	0.025***
		(0.005)	(0.007)	(0.004)	(0.018)	(0.003)	(0.004)	(0.006)
ln(INFL)		−0.0001	0.0001	−0.001**	−0.001	0.0001	0.001	−0.0001
		(0.0001)	(0.0001)	(0.001)	(0.014)	(0.0001)	(0.001)	(0.0001)
N. Obs	3,646	3,202	2,147	1,055	539	2,663	783	2,184
N. Countries	171	165	159	160	28	137	37	118
Sample	All	All	Y < 2012	Y > 2011	AE	EMDE	MIC	LIC

Robust standard errors in parenthesis, clustered at the country level.

*** Statistically significant at the 1% level, ** Statistically significant at the 5% level, * Statistically significant at the 10% level.

Table 2. State-owned banks and GDP growth (dep. var: per capita GDP growth, 5-year average).

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)
ln(Y PC) t-5	−0.893***	−1.488***	−0.915***	−1.847***	−0.033	−5.559***	−7.178***	−5.469***	−6.244***	−4.219***
	(0.235)	(0.436)	(0.250)	(0.382)	(0.718)	(0.957)	(1.847)	(1.005)	(1.795)	(1.427)
GOB t-5	1.607**	1.289	1.585**	2.525***	1.026	−0.033	2.495	−0.219	0.757	−1.348
	(0.671)	(0.826)	(0.716)	(0.921)	(0.841)	(0.578)	(1.892)	(0.557)	(0.868)	(1.231)
PRIVY t-5	−0.019	−1.126***	0.066	−0.029	−0.022	−0.564**	−1.241**	−0.479	−0.702	−0.127
	(0.217)	(0.268)	(0.243)	(0.328)	(0.377)	(0.271)	(0.495)	(0.296)	(0.445)	(0.606)
EDU t-5	1.934***	3.240***	1.985***	3.492***	0.165	7.048***	−0.083	7.234***	8.637***	5.053
	(0.562)	(1.065)	(0.588)	(0.902)	(0.605)	(1.378)	(2.784)	(1.475)	(2.185)	(3.192)
Gov Cons t-5	−0.756*	−1.939***	−0.559	0.895	−1.896**	0.690	1.427	0.658	2.501*	−0.476
	(0.427)	(0.481)	(0.539)	(0.775)	(0.866)	(0.583)	(1.853)	(0.598)	(1.325)	(0.971)
Open t-5	0.320	0.586***	0.052	0.222	0.144	0.572	2.626*	0.512	2.126*	0.435
	(0.205)	(0.199)	(0.325)	(0.487)	(0.488)	(0.461)	(1.496)	(0.476)	(1.207)	(0.406)
Ln(INF) t-5	−0.002***	−0.115**	−0.002***	−0.012	−0.003***	−0.002*	−0.133***	−0.002*	−0.020***	−0.001**
	(0.001)	(0.042)	(0.001)	(0.007)	(0.001)	(0.001)	(0.035)	(0.001)	(0.005)	(0.000)
Constant	6.767***	12.705***	7.625***	8.727***	6.612
	(1.975)	(4.410)	(2.324)	(2.858)	(5.734)
N. Obs	2,171	437	1,734	741	460	2,171	437	1,734	741	460
R^2	0.149	0.230	0.126	0.285	0.142
N. Countries	134	28	106	44	30	134	28	106	44	30
Sample	All	AE	EMDE	MIC	LIC	All	AE	EMDE	MIC	LIC
Country FE	No	No	No	No	No	Yes	Yes	Yes	Yes	Yes

Robust standard errors in parentheses, clustered at the country level.

*** Statistically significant at the 1% level, ** Statistically significant at the 5% level, * Statistically significant at the 10% level.

Table 3. State-owned banks and banking crises and logit model (dep. var: banking crisis dummy).

	(1)	(2)	(3)	(4)
GOB t-1	−3.773***	−4.469***	−4.439***	−6.109***
	(0.863)	(0.956)	(1.127)	(1.197)
GOB	0.708	0.622	0.813	1.662
	(1.326)	(1.442)	(1.464)	(2.835)
GOB t+1	3.033***	3.482***	3.380***	3.589
	(0.940)	(1.033)	(1.174)	(3.449)
GROWTHt-1				0.009
				(0.063)
∆TOTt-1				−0.109
				(2.348)
∆DXt-1				−0.045***
				(0.016)
RRATE t-1				0.062*
				(0.034)
Ln(INF) t-1				0.036**
				(0.015)
ln(Y PC) t-1				−0.204
				(0.348)
GOV BAL/GDP t-1				0.035
				(0.026)
MONEY/RES t-1				0.056*
				(0.029)
PRIVY t-1				1.519**
				(0.627)
CR GROWTH t-3				0.803**
				(0.350)
MIC		0.825***	0.798**	2.377***
		(0.296)	(0.310)	(0.684)
LIC		−0.585	−0.569	0.603
		(0.497)	(0.471)	(1.113)
GFC			1.826***	1.212***
			(0.284)	(0.459)
Constant	−4.269***	−4.426***	−5.011***	−6.040*
	(0.171)	(0.240)	(0.275)	(3.360)
N. Obs.	3,670	3,670	3,827	2,133
Pseudo R^2	0.02	0.05	0.11	0.24

Robust standard errors in parentheses.

*** Statistically significant at the 1% level, ** Statistically significant at the 5% level, * Statistically significant at the 10% level.

short-legendFigure 3

short-legendFigure 4.

short-legendFigure 5.

short-legendFigure 6.

Table 4. Bank ownership and lending cyclicality (dep. var: growth of net loans).

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)	(10)	(11)
PUB	5.056**	3.255**	3.268**	4.017	3.339*	0.308	−1.818	0.863	3.482	10.407	2.828
	(2.219)	(2.048)	(2.051)	(0.926)	(1.928)	(0.143)	(0.370)	(0.366)	(1.504)	(1.081)	(1.193)
PUBxGR	−0.333***	−0.385***	−0.388***	−0.102	−0.503***	−0.261*	−0.006	−0.387**	−0.464***	−0.057	−0.590***
	(2.691)	(3.961)	(3.825)	(0.547)	(4.393)	(1.742)	(0.018)	(2.311)	(4.046)	(0.269)	(4.426)
ln(Assets)t-1		−12.710***	−12.718***	−10.812***	−14.919***	−14.353***	−12.522***	−16.688***	−14.475***	−12.183***	−16.991***
		(30.730)	(29.376)	(17.645)	(29.039)	(19.170)	(11.854)	(19.535)	(16.505)	(9.289)	(19.141)
ln(Assets)t-1xGR			0.002	0.053	0.036	−0.032	−0.017	0.011	−0.039	−0.009	−0.007
			(0.079)	(1.070)	(1.114)	(0.694)	(0.195)	(0.209)	(1.083)	(0.143)	(0.177)
Cust Dep/Assets t-1		−0.109***	−0.109***	−0.107***	−0.103***	−0.097***	−0.108***	−0.084***	−0.091***	−0.085*	−0.085***
		(7.641)	(7.630)	(5.144)	(5.311)	(4.361)	(3.571)	(2.640)	(3.729)	(1.868)	(2.998)
Loans/Assets t-1		−0.700***	−0.700***	−0.554***	−0.816***	−0.792***	−0.623***	−0.937***	−0.858***	−0.732***	−0.927***
		(38.600)	(38.599)	(20.498)	(34.435)	(28.714)	(15.680)	(25.276)	(28.128)	(13.549)	(25.877)
N. Obs.	63,802	62,726	62,726	31,373	31,353	33,579	18,544	15,035	28,787	12,670	16,117
CY FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Sample	ALL	ALL	ALL	AE	EMDE	ALL	AE	EMDE	ALL	AE	EMDE
						Year<2009			Year ≥2009

t-Statistics in parenthesis computed using robust standard errors clustered at the bank level.

*** Statistically significant at the 1% level, ** Statistically significant at the 5% level, * Statistically significant at the 10% level.

Table 5. Bank ownership, lending cyclicality, and fiscal fundamentals (dep. var: growth of net loans).

	(1)	(2)	(3)	(4)	(5)	(6)
PUB	2.406	3.973	1.945	2.680	3.220	2.125
	(1.451)	(0.905)	(1.078)	(1.522)	(0.792)	(1.060)
PUBxGRxLow Debt	−0.271**	−0.006	−0.341**
	(2.258)	(0.032)	(2.417)
PUBxGRxHigh Debt	−0.453**	−0.915	−0.468**
	(2.161)	(0.824)	(2.127)
ln(Assets)t-1	−12.998***	−11.049***	−14.834***	−12.531***	−10.695***	−14.837***
	(31.597)	(18.035)	(29.267)	(28.613)	(17.626)	(26.764)
Cust Dep/Assets t-1	−0.104***	−0.098***	−0.102***	−0.104***	−0.106***	−0.093***
	(7.152)	(4.566)	(5.174)	(6.990)	(5.111)	(4.447)
Loans/Assets t-1	−0.696***	−0.556***	−0.809***	−0.676***	−0.554***	−0.791***
	(37.286)	(19.959)	(33.284)	(35.750)	(20.461)	(30.859)
PUBxGRxInv. Grade				−0.125	−0.015	−0.163
				(0.825)	(0.081)	(0.830)
PUBxGRxNon-Inv. Grade				−0.656***	−10.790	−0.680***
				(4.191)	(1.449)	(4.153)
Observations	59,843	30,029	29,814	58,330	31,372	26,958
CY FE	Yes	Yes	Yes	Yes	Yes	Yes
Bank FE	Yes	Yes	Yes	Yes	Yes	Yes
Sample	ALL	AE	EMDE	ALL	AE	EMDE

t-statistics in parenthesis computed using robust standard errors clustered at the bank level

*** Statistically significant at the 1% level, ** Statistically significant at the 5% level, * Statistically significant at the 10% level.

Bank ownership and lending to the government (dep. var government bond holding over assets). The spikes are 95% (in black) and 99% (in grey) confidence intervals.