IDEAS home Printed from
   My bibliography  Save this paper

The 2008 Financial Crisis and its effects on credit supply in the Brazilian banking system - The stabilizing role of public banks


  • Juliano Adolfo Wide Pissetti


In this paper, I show why Brazilian public banks acted as stabilizers of credit supply after the 2008 financial crisis. My analysis utilizes data from the Brazilian banking system and the seven largest Brazilian banks to evaluate the hypotheses posed by Micco and Panizza (2004). This analysis provides evidence that the stability or expansion of the deposit base was not the main factor that explains the less pro-cyclical behaviour of public banks after the crisis. In fact, an explicit stabilization mandate was observed. Public banks were able to maintain faster expansion of loans after the 2008 crisis ultimately due to the additional funding received from the government.

Suggested Citation

  • Juliano Adolfo Wide Pissetti, 2012. "The 2008 Financial Crisis and its effects on credit supply in the Brazilian banking system - The stabilizing role of public banks," Competence Centre on Money, Trade, Finance and Development 1209, Hochschule fuer Technik und Wirtschaft, Berlin.
  • Handle: RePEc:mtf:wpaper:1209

    Download full text from publisher

    File URL:
    File Function: First version, 2012
    Download Restriction: no

    References listed on IDEAS

    1. Moran, Cristian & Serra, Pablo, 1993. "Trade reform under regional integration : Policy simulations using a CGE model for Guatemala," Journal of Development Economics, Elsevier, vol. 40(1), pages 103-132, February.
    2. Verwaal, Ernst & Donkers, Bas, 2003. "Customs-Related Transaction Costs, Firm Size and International Trade Intensity," Small Business Economics, Springer, vol. 21(3), pages 257-271, November.
    3. Innwon Park & Soonchan Park, 2009. "Free Trade Agreements versus Customs Unions: An Examination of East Asia," Asian Economic Papers, MIT Press, vol. 8(2), pages 119-139, Spring.
    4. Kala Krishna, 2005. "Understanding Rules of Origin," NBER Working Papers 11150, National Bureau of Economic Research, Inc.
    5. Hiau Looi Kee & Alessandro Nicita & Marcelo Olarreaga, 2008. "Import Demand Elasticities and Trade Distortions," The Review of Economics and Statistics, MIT Press, vol. 90(4), pages 666-682, November.
    6. Kala Krishna & Anne Krueger, 1995. "Implementing Free Trade Areas: Rules of Origin and Hidden Protection," NBER Working Papers 4983, National Bureau of Economic Research, Inc.
    7. Krueger, Anne O., 1997. "Free trade agreements versus customs unions," Journal of Development Economics, Elsevier, vol. 54(1), pages 169-187, October.
    8. Olivier Cadot & Jaime de Melo & Antoni Estevadeordal & Akiko Suwa-Eisenmann & Bolormaa Tumurchudur, 2002. "Assessing the effect of NAFTA's rules of origin," Research Unit Working Papers 0306, Laboratoire d'Economie Appliquee, INRA.
    9. Peter Walkenhorst & Tadashi Yasui, 2004. "Quantitative Assessment of the Benefits of Trade Facilitation," International Trade 0401008, EconWPA.
    Full references (including those not matched with items on IDEAS)

    More about this item


    working paper; daadpartnership; finance-and-trade;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mtf:wpaper:1209. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Dr. Sebastian Dullien). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.