Author : Romain Bouis
Publisher : International Monetary Fund
ISBN 13 : 1513512951
Total Pages : 27 pages
Book Rating : 4.5/5 (135 download)
Book Synopsis Banks’ Holdings of Government Securities and Credit to the Private Sector in Emerging Market and Developing Economies by : Romain Bouis
Download or read book Banks’ Holdings of Government Securities and Credit to the Private Sector in Emerging Market and Developing Economies written by Romain Bouis and published by International Monetary Fund. This book was released on 2019-10-11 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the relationship between banks’ holdings of domestic sovereign securities and credit growth to the private sector in emerging market and developing economies. Higher banks’ holdings of government debt are associated with a lower credit growth to the private sector and with a higher return on assets of the banking sector. Analysis suggests that the negative relationship between banks’ claims on the government and private sector credit growth mainly reflects a portfolio rebalancing of banks towards safer, more liquid public assets in stress times and provides only limited evidence of a crowding-out effect due to financial repression.