Financial Protectionism the first tests BerkeleyHaas金融保护主义的第一次测试伯克利哈斯.pptVIP

Conclusion from ‘Loan mix’ British banks behaviour does not appear to change following nationalisation But foreign banks lend more outside and less in the UK following nationalisation Highly statistically significant, robust, size of effect reasonable ? We interpret this as evidence of financial protectionism Not trivial: 12% loan activity nationalized * Interest rates as Regressand With imperfect competition, banks can charge interest rates above cost of capital (Freixas and Rochet, 2008) Previous work rejects perfect competition in the UK (Claessens and Laeven, 2004) So look for evidence o