{
  "title": "State-Owned Banks and Fiscal Discipline",
  "publication": "IMF Working Papers, October 3, 2013",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/state-owned-banks-and-fiscal-discipline-40982",
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  "summary": "State-owned banks may help to soften the financing constraints of public sector entities and consequently become a factor that hampers fiscal discipline.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- State-owned banks may help to soften the financing constraints of public sector entities and consequently become a factor that hampers fiscal discipline.\n- Using a panel dataset, the authors find that a larger presence of state-owned banks in the banking system is associated with:\n  - more credit to the public sector,\n  - larger fiscal deficits,\n  - higher public debt ratios,\n  - crowding out of credit to the private sector.\n- The results suggest that the lending practices of state-owned banks should be carefully assessed in any strategy to pursue fiscal discipline."
    },
    {
      "heading": "Main Findings (empirical)",
      "content": "- Larger presence of state-owned banks → more credit to the public sector.\n- Larger presence of state-owned banks → larger fiscal deficits.\n- Larger presence of state-owned banks → higher public debt ratios.\n- Larger presence of state-owned banks → crowding out of credit to the private sector."
    },
    {
      "heading": "Policy Implications and Recommendations",
      "content": "- Assess the lending practices of state-owned banks as part of strategies to pursue fiscal discipline.\n- Consider reforms or oversight measures targeting state-owned bank lending to limit financing that may weaken fiscal discipline (implied by empirical associations above).\n\n---\n\n Content in this bundle\n\n- Wp13206\n  - Wp13206 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp13206 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/state-owned-banks-and-fiscal-discipline-40982"
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    "Authors: Jesus R Gonzalez-Garcia, Francesco Grigoli",
    "Published: October 3, 2013",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484392805.001",
    "State-owned banks may help to soften the financing constraints of public sector entities and consequently become a factor that hampers fiscal discipline.",
    "Using a panel dataset, the authors find that a larger presence of state-owned banks in the banking system is associated with:",
    "The results suggest that the lending practices of state-owned banks should be carefully assessed in any strategy to pursue fiscal discipline.",
    "Larger presence of state-owned banks → more credit to the public sector.",
    "Larger presence of state-owned banks → larger fiscal deficits.",
    "Larger presence of state-owned banks → higher public debt ratios.",
    "Larger presence of state-owned banks → crowding out of credit to the private sector.",
    "Assess the lending practices of state-owned banks as part of strategies to pursue fiscal discipline.",
    "Consider reforms or oversight measures targeting state-owned bank lending to limit financing that may weaken fiscal discipline (implied by empirical associations above).",
    "**Wp13206**"
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