Cull, RobertMartínez Pería, María Soledad2013-01-022013-01-022012-09https://hdl.handle.net/10986/12035This paper examines the impact of bank ownership on credit growth in developing countries before and during the 2008-2009 crisis. Using bank-level data for countries in Eastern Europe and Latin America, it analyzes the growth of banks' total gross loans as well as the growth of corporate, consumer, and residential mortgage loans. Although domestic private banks in Eastern Europe and Latin America contracted their loan growth rates during the crisis, there are differences in foreign and government-owned bank credit growth across regions. In Eastern Europe, foreign bank total lending fell by more than domestic private bank credit. These results are primarily driven by reductions in corporate loans. Furthermore, government-owned banks in Eastern Europe did not act counter-cyclically. The opposite was true in Latin America, where the growth of government-owned banks' corporate and consumer loans during the crisis exceeded that of domestic and foreign banks. Contrary to the case of foreign banks in Eastern Europe, those in Latin America did not fuel loan growth prior to the crisis and did not contract lending at a faster pace than domestic banks during the crisis.en-USCC BY 3.0 IGOACCOUNTINGAFFILIATESASSET RATIOASSETS RATIOBANK ACCESSBANK ASSETBANK ASSETSBANK BEHAVIORBANK CREDITBANK EQUITYBANK INTERMEDIATIONBANK LENDINGBANK LIQUIDITYBANK LOANBANK LOANSBANK OF GREECEBANK POLICYBANK PROFITABILITYBANK PROFITSBANK REGULATIONBANK SIZEBANKING CORPORATIONBANKING CRISISBANKING INDUSTRYBANKING SECTORBANKING SECTOR OUTREACHBANKING SECTORSBANKING SERVICESBANKING STRUCTUREBANKING SYSTEMBANKING SYSTEM ASSETSBANKING SYSTEMSBANKSBUDGET SURPLUSCAPITAL ADEQUACYCAPITAL FLOWSCAPITAL MARKETSCAPITALIZATIONCENTRAL BANKCHECKSCOLLAPSECONSOLIDATIONCONSUMER LOANCONSUMER LOANSCORPORATION BANKCREDIT BANKCREDIT CRUNCHCREDIT GROWTHCREDIT LEVELSCRISIS LENDINGCURRENCY UNITSDEFICITSDEPENDENTDEPOSITDEPOSITSDEVELOPING COUNTRIESDOMESTIC BANKDOMESTIC BANKSDUMMY VARIABLEDUMMY VARIABLESECONOMIC GROWTHECONOMIC POLICYECONOMIC PROBLEMSECONOMIES IN TRANSITIONEMERGING MARKETEMERGING MARKET ECONOMIESEMERGING MARKETSEQUITY RATIOEQUITY RATIOSEXCHANGE RATEEXPRESS LOANSEXTERNAL FINANCEFEDERAL RESERVEFEDERAL RESERVE BANKFEDERAL RESERVE BANK OF BOSTONFEDERAL RESERVE BANK OF NEW YORKFINANCIAL CONSTRAINTSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DISTRESSFINANCIAL GLOBALIZATIONFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTEGRATIONFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCIAL SYSTEMSFIRM PERFORMANCEFISCAL DEFICITSFOREIGN BANKFOREIGN BANK ENTRYFOREIGN BANK PARTICIPATIONFOREIGN BANKSFOREIGN CURRENCIESFOREIGN OWNERSHIPGOVERNMENT BANKGOVERNMENT BANKSGOVERNMENT DEFICITSGOVERNMENT OWNERSHIPHOLDINGHOLDINGSHOST COUNTRIESHOST COUNTRYINITIATIVEINTERMEDIATION SPREADSINTERNATIONAL BANKINTERNATIONAL BANKSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL FLOWSINTERNATIONAL ECONOMICSINTERNATIONAL FINANCEINTERNATIONAL FINANCIAL INSTITUTIONSINVESTMENT BANKLARGE BANKSLENDERSLIQUID ASSETSLIQUIDITY RATIOLIQUIDITY×CRISISLLCLOANLOAN AMOUNTSLOAN PORTFOLIOLOAN PORTFOLIOSLOAN VOLUMESLOCAL CURRENCYLOCAL GOVERNMENTSMARKET FAILURESMONETARY FUNDMONETARY POLICYMORTGAGE LOANMORTGAGE LOANSMULTINATIONALMULTINATIONAL BANKMULTINATIONAL BANKSOWNERSHIP STRUCTUREOWNERSHIP STRUCTURESPERSONAL FINANCEPOLITICIANSPOSITIVE COEFFICIENTSPRIVATE BANKPRIVATE BANKSPRIVATE BORROWERSPROFITABILITYPRUDENTIAL REGULATIONPUBLIC-PRIVATE PARTNERSHIPRESIDENTIAL LOANRESIDENTIAL MORTGAGERESIDENTIAL MORTGAGESRETURNRETURN ON ASSETSROLE OF BANKSAVINGSSAVINGS BANKSHARE OF ASSETSSHARE OF BANK ASSETSSHAREHOLDERSSOLVENCYSOLVENTSOLVENT BANKSSUBSIDIARIESSUBSIDIARYSUPPLY OF CREDITSYSTEMIC CRISESSYSTEMIC STABILITYTERMS OF CREDITTRADE CREDITUNIONWHOLESALE FUNDINGWorld Bank10.1596/1813-9450-6195