IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM
Public banks are important components of financial markets in many countries. Their goal is to implement social and economic policies of governments. Their activity should have positive impact on economy and stability of financial sector. After the first phase of the crisis their main stabilization...
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| Format: | Article |
| Language: | English |
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Wydawnictwo SGGW - Warsaw University of Life Sciences Press
2013-12-01
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| Series: | Polityki Europejskie, Finanse i Marketing |
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| Online Access: | https://pefim.sggw.edu.pl/article/view/1354 |
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| _version_ | 1832554170538786816 |
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| author | Krzysztof Kluza |
| author_facet | Krzysztof Kluza |
| author_sort | Krzysztof Kluza |
| collection | DOAJ |
| description | Public banks are important components of financial markets in many countries. Their goal is to implement social and economic policies of governments. Their activity should have positive impact on economy and stability of financial sector. After the first phase of the crisis their main stabilization function includes provision of long-term financing and countercyclical policies supporting investment demand in domestic economy. However, like all public institutions these banks are prone to microeconomic and macroeconomic mechanisms, which distort their actions and may lead to decrease of social welfare. This paper outlines potential inefficiencies, which may arise as an effect of public bank activities, as well as a short description of banks which experienced such events on a large scale. There are also presented recommendations how to prevent materialization of such scenarios in a future. |
| format | Article |
| id | doaj-art-b43db98ee5ce4e9abfd8678c6463da5f |
| institution | Kabale University |
| issn | 2081-3430 2544-0640 |
| language | English |
| publishDate | 2013-12-01 |
| publisher | Wydawnictwo SGGW - Warsaw University of Life Sciences Press |
| record_format | Article |
| series | Polityki Europejskie, Finanse i Marketing |
| spelling | doaj-art-b43db98ee5ce4e9abfd8678c6463da5f2025-02-03T05:52:11ZengWydawnictwo SGGW - Warsaw University of Life Sciences PressPolityki Europejskie, Finanse i Marketing2081-34302544-06402013-12-0110(59)IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEMKrzysztof Kluza0Szkoła Główna Handlowa w Warszawie, Katedra Rynków i Instytucji FinansowychPublic banks are important components of financial markets in many countries. Their goal is to implement social and economic policies of governments. Their activity should have positive impact on economy and stability of financial sector. After the first phase of the crisis their main stabilization function includes provision of long-term financing and countercyclical policies supporting investment demand in domestic economy. However, like all public institutions these banks are prone to microeconomic and macroeconomic mechanisms, which distort their actions and may lead to decrease of social welfare. This paper outlines potential inefficiencies, which may arise as an effect of public bank activities, as well as a short description of banks which experienced such events on a large scale. There are also presented recommendations how to prevent materialization of such scenarios in a future.https://pefim.sggw.edu.pl/article/view/1354public banksfinancial stabilityinefficiency of public entities |
| spellingShingle | Krzysztof Kluza IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM Polityki Europejskie, Finanse i Marketing public banks financial stability inefficiency of public entities |
| title | IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM |
| title_full | IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM |
| title_fullStr | IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM |
| title_full_unstemmed | IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM |
| title_short | IMPACT OF PUBLIC BANKS ON STABILITY OF FINANCIAL SYSTEM |
| title_sort | impact of public banks on stability of financial system |
| topic | public banks financial stability inefficiency of public entities |
| url | https://pefim.sggw.edu.pl/article/view/1354 |
| work_keys_str_mv | AT krzysztofkluza impactofpublicbanksonstabilityoffinancialsystem |