State financial institutions : mandates, governance, and beyond
AbstractThere is no doubt that on average the performance of state financial institutions around the world has been below the lowest expectations. Lack of governance, management skills, regulation, and transparency, and misguided incentives have contributed to discredit these institutions for supporting the development of local financial markets. However, the pro-active role that some state financial institutions have played in the recent crisis in allocating credit to sectors cyclically not attractive for commercial banks has brought back the question of whether some state ownership in the banking system would be preferable. This paper analyzes the experience of four state financial institutions that have performed relatively well in the past: Canada's Business Development Bank, Chile's BancoEstado, South Africa's Development Bank of Southern Africa, and Finland's Finnvera plc. The author finds that these institutions have different checks and balances to mitigate eventual mismanagement of resources. The author also finds that little progress has been made in measuring the policy performance of these institutions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 5141.
Date of creation: 01 Nov 2009
Date of revision:
Banks&Banking Reform; Debt Markets; Access to Finance; Corporate Law; Bankruptcy and Resolution of Financial Distress;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christa Hainz & Hendrik Hakenes, 2009.
"The Politician and his Banker – How to Efficiently Grant State Aid,"
Ifo Working Paper Series
Ifo Working Paper No. 71, Ifo Institute for Economic Research at the University of Munich.
- Hainz, Christa & Hakenes, Hendrik, 2012. "The politician and his banker — How to efficiently grant state aid," Journal of Public Economics, Elsevier, vol. 96(1), pages 218-225.
- World Bank, 2010. "Scaling-Up SME Access to Financial Services," World Bank Other Operational Studies 12515, The World Bank.
- Beck, T.H.L. & Munzele Maimbo, S. & Faye, I. & Triki, T., 2011.
"Financing Africa: Through the crisis and beyond,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-4758568, Tilburg University.
- Diana Smallridge & Fernando de Olloqui, 2011. "A Health Diagnostic Tool for Public Development Banks," IDB Publications 6398, Inter-American Development Bank.
- Heinz P. Rudolph, 2010. "State Financial Institutions : Can They Be Relied on to Kick-Start Lending?," World Bank Other Operational Studies 10216, The World Bank.
- Calice Pietro, 2013. "Working Paper 174 - African Development Finance Institutions: Unlocking the Potential," Working Paper Series 470, African Development Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.