Financial Development, Bank Ownership, and Growth. Or, Does Quantity Imply Quality?

No 09-002, Harvard Business School Working Papers from Harvard Business School

Abstract: In 1980, India nationalized its large private banks. This induced different bank ownership patterns across different towns, allowing credible identification of the effects of bank ownership on financial development, lending rates, and the quality of intermediation, as well as employment and investment. Credit markets with nationalized banks experienced faster credit growth during a period of financial repression. Nationalization led to lower interest rates and lower quality intermediation, and may have slowed employment gains in trade and services. Development lending goals were met, but these had no impact on the real economy.

JEL-codes: G21 O16 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2007-11
New Economics Papers: this item is included in nep-ban, nep-cwa and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Financial Development, Bank Ownership, and Growth: Or, Does Quantity Imply Quality? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hbs:wpaper:09-002

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