Financial protectionism? First evidence

• Autores: Andrew K. Rose, Tomasz Wieladek
• Localización: The Journal of finance, ISSN 0022-1082, Vol. 69, Nº 5, 2014, págs. 2127-2149
• Idioma: inglés
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• Resumen

  • We examine large public interventions in the financial sector, such as bank nationalizations and search for �financial protectionism,� a decrease in the quantity and/or an increase in the price of loans that banks from one country make to borrowers resident in another. We use a bank-level panel data set spanning all U.K.-resident banks between 1997Q3 and 2010Q1. After nationalization, foreign banks reduced their fraction of British loans by about 11% and increased their effective interest rates by about 70 basis points. In contrast, nationalized British banks did not significantly change either their loan mix or effective interest rates.