Browsing by Subject "Development banks"

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Embargo
Bank ownership, credit supply volatility, and macroeconomic volatility
(Elsevier BV, 2024-07) Önder, Zeynep; Özyıldırım, Süheyla
We examine the real effects of credit supply volatility in emerging economies. In countries with highly effective governments, government-owned banks play a significant role in reducing the effect of credit supply volatility on macroeconomic volatility. Conversely, foreign banks do not significantly change this effect. Furthermore, the presence of government-owned banks as development banks plays a positive role in stabilizing the economy during a sovereign or currency crisis. In countries where foreign banks dominate the banking sector, these banks amplify the adverse effect of a volatile credit supply on the volatilities in output, consumption, and investment growth rates, especially during a banking crisis.
Open Access
The mutually transforming effect: a comparative study on European and Chinese development finance in Central and Eastern Europe
(2022-07) Metintaş, Melike
The 21st century has witnessed a profound transition in global development finance after emerging powers have become important creditors for the developing world. Explaining these actors of global development finance and the factors shaping their financing behavior has been widely discussed in the scholarly literature. With its large amount of overseas financing and alternative economic growth model, China has emerged as the top creditor amongst traditional financial actors. Therefore, diversification and competition between traditional Western and Chinese creditors have become the main focus of scholars and policymakers. Yet, current changes in the global development finance show that the likelihood of convergence and cooperation are increasing between Western and China-led development finance. While China is integrating more into multilateral cooperation and abiding by international standards, Western actors have begun to change their financing policies by looking at nations’ needs rather than structural adjustments first. This thesis examines the interactions between Chinese (CDB and CHEXIM) and traditional European (EIB and EBRD) development banks in Central and Eastern Europe. By doing so, this thesis argues that a ‘mutually transforming effect’ exists between Chinese and European development finance as a result of their interactions. While Chinese banks cooperate more with European banks and the EU's financial mechanisms to fulfill their structural weaknesses, the European banks provide more credits on riskier infrastructure projects and state-owned enterprises in the CEE region.