NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by M. Deniz Yavuz

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

Working Papers and Chapters

April 2013State-controlled Banks and the Effectiveness of Monetary Policy
with Randall Morck, Bernard Yeung: w19004
We find lending by state controlled banks to be significantly more associated with monetary policy than is lending by private sector banks. At the country-level, we further find monetary policy to be significantly closely linked to aggregate loan growth and aggregate fixed capital investment growth in countries whose large banks are more predominantly state controlled. These differences are more pronounced during monetary expansions amid slow GDP growth periods. Other factors, such as small bank size and the presence of a controlling shareholder in a private sector bank also correlate with more lending sensitivity to monetary policy.
December 2009Banking System Control, Capital Allocation, and Economy Performance
with Randall Morck, Bernard Yeung: w15575
We observe less efficient capital allocation in countries whose banking systems are more thoroughly controlled by tycoons or families. The magnitude of this effect is similar to that of state control over banking. Unlike state control, tycoon or family control also correlates with slower economic and productivity growth, greater financial instability, and worse income inequality. These findings are consistent with theories that elite-capture of a country’s financial system can embed “crony capitalism”.

Contact and additional information for this authorAll papers and publicationsWorking Papers onlyWorking Papers with publication info

 
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