Önder, ZeynepÖzyıldırım, Süheyla2025-02-242025-02-242024-070378-4266https://hdl.handle.net/11693/116723We 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.EnglishCC BY 4.0 DEED (Attribution 4.0 International)https://creativecommons.org/licenses/by/4.0/Credit supply volatilityGovernment-owned banksDevelopment banksForeign banksMacroeconomic volatilityArticle10.1016/j.jbankfin.2024.1071831872-6372