Publication: Access to Credit and Bank Ownership: Evidence from Firm-Level Data
Date
2023-03-30
ISSN
Published
2023-03-30
Author(s)
Di Filippo, Mario
Panizza, Ugo
Abstract
This paper uses a unique dataset with
matched information at the firm-bank level covering 13,000
firms and 550 banks in 36 emerging and developing economies
over 2012–20. The analysis tests whether government-owned
banks fulfill their social mandate by targeting credit
constrained firms or firms that are more likely to generate
positive externalities. The findings show that credit
constrained firms are more likely to borrow from
government-owned banks, and that this is especially the case
in countries with good institutions. However, the paper does
not find any evidence that government-owned banks target
innovative firms or “green” firms. The findings show that in
firms that borrow from government-owned banks, employment
reacts less to business cycle conditions relative to firms
that borrow from private banks. The paper further shows that
employment is more stable in credit constrained firms that
have a relationship with a government-owned banks with
respect to credit constrained firms that borrow from a
private bank.
Citation
“Di Filippo, Mario; Panizza, Ugo. 2023. Access to Credit and Bank Ownership: Evidence from Firm-Level Data. Policy Research Working Papers; 10384. © World Bank, Washington, DC. http://hdl.handle.net/10986/39625”