Rudolph, Heinz P.2012-08-132012-08-132010-01https://hdl.handle.net/10986/10216The need to kick-start lending to the real sector in response to the global financial crisis is leading many countries to expand the role of state-owned financial institutions. The effectiveness of the support by these institutions depends in large part on the nature of the shock, on their ability to leverage private commercial banks to scale up their impact, and on the existence of a sound institutional framework. While it is too early to evaluate their effectiveness, past experience with the use of such institutions is sobering. Whether countries will heed the les sons of this experience remains to be seen.CC BY 3.0 IGOACCESS TO FINANCEACCOUNTABILITYBALANCE SHEETSBANK LENDINGBANK MANAGEMENTBANK OF CANADABANK OF KOREABANK PRIVATIZATIONBANK REGULATIONBANKING ASSETSBANKING CRISESBANKING CRISISBANKING INSTITUTIONSBANKING SUPERVISIONBANKING SYSTEMSBASIS POINTSBOARD MEMBERSBONDSBORROWINGBUSINESS DEVELOPMENTBUSINESS DEVELOPMENT BANKCAPACITY CONSTRAINTSCAPITAL ALLOCATIONCAPITAL INJECTIONSCAPITAL MARKETSCENTRAL BANKSCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL PAPERCORPORATE GOVERNANCECORPORATE GOVERNANCE PRINCIPLESCORRUPTIONCREDIT ALLOCATIONCREDIT CRUNCHCREDIT DECISIONSCREDIT GAPCREDIT GROWTHCREDIT GUARANTEESCREDIT INSTITUTIONSCREDIT RATINGCREDIT RATING AGENCYCREDIT SUPPORTDEBTDEGREE OF RISKDEMAND FOR CREDITDEPOSITDEPOSITSDEVELOPMENT BANKSDEVELOPMENT FINANCEDEVELOPMENT FINANCE INSTITUTIONDEVELOPMENT FINANCE INSTITUTIONSECONOMIC GROWTHECONOMIC STABILITYECONOMICSEMERGING ECONOMIESEMERGING MARKETSENDOWMENTSEQUITY STAKESEXCHANGE RATEEXPORT FINANCINGFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL DIFFICULTIESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL REFORMSFINANCIAL RESOURCESFINANCIAL SUPPORTFINANCIAL SUSTAINABILITYGOOD CORPORATE GOVERNANCEGOVERNANCE ARRANGEMENTSGOVERNMENT FUNDINGGOVERNMENT OWNERSHIPGOVERNMENT PAPERGOVERNMENT SUBSIDIESGUARANTEE FUNDHOUSEHOLDSIDLE CAPACITYIMPLICIT GOVERNMENT GUARANTEEIMPLICIT GUARANTEEINCORPORATEDINDIVIDUALSINSURANCEINSURANCE PRODUCTSINTEREST RATEINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSISSUANCELACK OF FINANCELACK OF TRANSPARENCYLARGE COMPANIESLENDERLENDER OF LAST RESORTLENDING BEHAVIORLIMITEDLINES OF CREDITLIQUIDITYLIQUIDITY PROBLEMSLOANLOAN PORTFOLIOSLONG-TERM COSTSLONG-TERM LOANSMANAGERSMANDATESMARKET DISCIPLINEMARKET FAILUREMARKET FAILURESMARKET PARTICIPANTSMARKET PLAYERSMARKET SHAREMONETARY POLICYOPERATIONAL COSTSPAYMENT SYSTEMPOLICY RESPONSEPOLICY RESPONSESPOLITICAL ECONOMYPOLITICAL PARTYPOOR CREDITPRICING POLICIESPRIVATE BANKSPRIVATE COMMERCIAL BANKSPRODUCTIVITYPROFITABILITYPRUDENTIAL REGULATIONPUBLIC COMPANIESPUBLIC DEBTPUBLIC DEBT MARKETSPUBLIC POLICYRATE OF RETURNREAL SECTORRECAPITALIZATIONRECESSIONRECESSIONSREGULATORY FORBEARANCEREGULATORY REFORMRETURNRETURNSRISK AVERSIONRISK MANAGEMENTRISK MANAGEMENT STRATEGIESRISK MANAGEMENT SYSTEMSSAFER ASSETSSAVINGSSHAREHOLDERSSHORT-TERM LIQUIDITYSTAKEHOLDERSSTATE BANKSSTATE GUARANTEESYSTEMIC RISKTECHNICAL ASSISTANCETIER 1 CAPITALTRADE FINANCEWRITTEN RECORDWorld Bank10.1596/10216