Browsing by Subject "Government-owned banks"
Now showing 1 - 1 of 1
- Results Per Page
- Sort Options
Item Embargo Bank ownership, credit supply volatility, and macroeconomic volatility(Elsevier BV, 2024-07) Önder, Zeynep; Özyıldırım, SüheylaWe 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.