Financial development, bank ownership, and growth
Subtitle: or, does quantity imply quality?
By: Shawn A. Cole
Contributors: Harvard Business School
Series: Working paper / Harvard Business School -- 09-002; Working paper (Harvard Business School) -- 09-002
Publisher: Harvard Business School
Published: 2008
Place of publication: Boston
Language: eng
Number of pages: 47
Description: 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.
Notes: "July 2008 "--Publisher's web site.

Includes bibliographical references.