Rudolph, Heinz P.2012-03-192012-03-192009-11-01https://hdl.handle.net/10986/4334There is no doubt that on average the performance of state financial institutions around the world has been below the lowest expectations. Lack of governance, management skills, regulation, and transparency, and misguided incentives have contributed to discredit these institutions for supporting the development of local financial markets. However, the pro-active role that some state financial institutions have played in the recent crisis in allocating credit to sectors cyclically not attractive for commercial banks has brought back the question of whether some state ownership in the banking system would be preferable. This paper analyzes the experience of four state financial institutions that have performed relatively well in the past: Canada's Business Development Bank, Chile's BancoEstado, South Africa's Development Bank of Southern Africa, and Finland's Finnvera plc. The author finds that these institutions have different checks and balances to mitigate eventual mismanagement of resources. The author also finds that little progress has been made in measuring the policy performance of these institutions.CC BY 3.0 IGOACCESS TO CREDITACCESS TO FINANCEACCESS TO FINANCIAL SERVICESAFFILIATESAGRICULTURAL SECTORALLOCATION OF FUNDSASSET LIABILITY MANAGEMENTBANKING ACCOUNTSBANKING CRISESBANKING CRISISBANKING INDUSTRYBANKING INSTITUTIONBANKING SECTORBANKING SYSTEMBANKRUPTCYBOARD MEMBERSBOARDS OF DIRECTORSBONDBOND MARKETBONDSBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT BANKBUSINESS FAILUREBUSINESS STRATEGYBUSINESS SURVIVALCAPITAL ADEQUACYCAPITAL ADEQUACY RATIOSCAPITAL ALLOCATIONCASH MANAGEMENTCEOCHECKSCOLLECTIVECOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL PRACTICECOMMERCIAL PRACTICESCOMMERCIAL RELATIONSHIPCOMPANYCOMPETITIVE MARKETSCONFLICTS OF INTERESTCONSULTING SERVICESCONTINGENT LIABILITIESCORPORATE GOVERNANCECORPORATE GOVERNANCE LAWSCORPORATE LAWCORPORATIONCOST OF CAPITALCREDIT AGENCYCREDIT ALLOCATIONCREDIT DECISIONSCREDIT MARKETCREDIT PORTFOLIOSCREDITSCROSS SUBSIDIESCROSS SUBSIDIZATIONDEBTDEBT MARKETDEPOSITDEPOSIT TAKING INSTITUTIONSDEPOSITORSDEPOSITSDERIVATIVEDERIVATIVE PRODUCTSDERIVATIVESDEVELOPMENT ASSISTANCEDEVELOPMENT BANKDEVELOPMENT BANKSDEVELOPMENT FINANCEDISBURSEMENTDIVERSIFICATIONEARNINGSECONOMIC GROWTHEMERGING MARKETSEMPLOYMENTEMPLOYMENT GROWTHENTREPRENEURIAL ACTIVITIESENTREPRENEURSHIPEQUITY INVESTMENTSEXCHANGE RATEEXTERNALITIESFARMERSFINANCIAL DEVELOPMENTFINANCIAL INNOVATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL PRODUCTSFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SUSTAINABILITYFINANCIAL SYSTEMSFINANCIAL TECHNOLOGYFIXED COSTSFUNDING SOURCESGOOD CORPORATE GOVERNANCEGOVERNANCE ISSUESGOVERNANCE SYSTEMGOVERNANCE SYSTEMSGOVERNMENT ACCOUNTSGOVERNMENT FUNDINGGOVERNMENT INTERVENTIONGOVERNMENT OWNERSHIPGOVERNMENT POLICIESGOVERNMENT SUPPORTHOUSEHOLDSHOUSINGIMPLICIT SUBSIDYINCORPORATEDINDEPENDENT DIRECTORSINDIVIDUALSINDUSTRIAL POLICYINFLATIONINFRASTRUCTURE FINANCINGINSTITUTIONAL INVESTORSINSURANCEINTEREST RATEINTEREST RATE RISKINTEREST RATESINTERNATIONAL BANKINVESTINGINVESTMENT ACTIVITIESINVESTMENT PROJECTSINVESTMENT SPENDINGJOB CREATIONLACK OF TRANSPARENCYLARGE COMPANIESLAWSLENDERLIABILITYLIABILITY MANAGEMENTLIABILITY SIDELIMITEDLINES OF CREDITLIQUIDITYLOCAL FINANCIAL MARKETSLONG-TERM COSTLONG-TERM FUNDINGMANAGERSMANDATEMANDATESMARKET BENCHMARKSMARKET CONDITIONSMARKET DEVELOPMENTSMARKET DISCIPLINEMARKET FAILUREMARKET FAILURESMARKET LEVELSMARKET PARTICIPANTSMARKET SHAREMATURITYMICROENTERPRISESMISMANAGEMENTMONETARY POLICYMORTGAGEMORTGAGE FINANCINGMORTGAGE LENDINGMORTGAGESMUNICIPALITIESOPERATING LOSSESOPERATIONAL COSTSPARTIAL GUARANTEESPARTNERSHIPPERSONSPORTFOLIOPORTFOLIOSPRIVATE BANKSPRIVATE ENTERPRISESPRIVATIZATIONPRODUCTIVITYPROFESSIONAL QUALIFICATIONSPROFITABILITYPROFITABLE BUSINESSPROFITABLE BUSINESSESPRUDENTIAL STANDARDSPRUDENTIAL SUPERVISIONPUBLIC COMPANIESPUBLIC ENTERPRISESPUBLIC FINANCEPUBLIC POLICYRATE OF RETURNRECAPITALIZATIONRECESSIONREGULATORY FORBEARANCEREGULATORY FRAMEWORKREGULATORY REFORMRETURNRETURN ON EQUITYRETURNSRISK ASSESSMENTSRISK AVERSIONRISK MANAGEMENTRISK MANAGEMENT SYSTEMRISK MANAGEMENT SYSTEMSSAVINGSSECURITIESSELF-FINANCINGSHAREHOLDERSHAREHOLDERSSMALL BUSINESSESSTAKEHOLDERSSTART-UPSTART-UPSSTATE OWNED BANKSSTATE OWNED COMPANIESSUBSIDIARYSUPERVISORY BOARDSUPERVISORY BOARDSSUPERVISORY FRAMEWORKSUPPLY OF FINANCINGTECHNICAL ASSISTANCETRADE UNIONSTRANSPARENCYTREASURYUNIVERSAL BANKVENTURE CAPITALWAGESWHOLESALE FUNDINGYIELD CURVEWorld Bank10.1596/1813-9450-5141