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Document Type
Conference Paper
Publication Date
4-27-2004
Conference Name
The Role of State-Owned Financial Institutions: Policy and Practice
Conference Location
Washington D.C
Conference Dates
April 27, 2004
Series
Faculty Research - Book Chapters and Conference Papers
First Page
1
Last Page
19
Keywords
Bank privatization, Pre-privatization Activities, Post Privatization scenario, Pakistan
Abstract / Description
A well functioning financial system is a pre-requisite for the economic development of any country. A large body of recent theoretical and empirical research has also confirmed the view that the development of financial markets and institutions in a country is crucial for economic growth1 . Realizing this importance of the financial sector in economic development, some governments in developing countries sought to increase their ownership of banks and other financial institutions, in order to direct credit towards priority sectors. However, the importance of state-owned banks in many developing countries contrasts worryingly with recent research findings, which show that the state ownership of banks has serious negative effects on economies in developing countries. A recent study2 finds that state ownership is negatively associated with bank performance and the overall development of the financial sector.
Recommended Citation
Husain, I. (2004). Policy considerations before bank privatization – Country experience., 1-19. Retrieved from https://ir.iba.edu.pk/faculty-research-series/206
