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  • Fig. 2.3

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    Cyruss Merano
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    This document compares the accumulation of nonperforming loans (NPLs) at public and private banks after adverse economic shocks in different regions. It finds that: - In all economies, public banks on average accumulated 0.05-0.1 higher NPLs than private banks in the 3-5 years following a shock. - In advanced economies, there was little difference between public and private bank NPL accumulation. - In emerging economies, public banks accumulated 0.05-0.1 more NPLs than private banks after shocks.

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    This document compares the accumulation of nonperforming loans (NPLs) at public and private banks after adverse economic shocks in different regions. It finds that: - In all economies, public banks on average accumulated 0.05-0.1 higher NPLs than private banks in the 3-5 years following a shock. - In advanced economies, there was little difference between public and private bank NPL accumulation. - In emerging economies, public banks accumulated 0.05-0.1 more NPLs than private banks after shocks.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    9 views1 page

    Fig. 2.3

    Uploaded by

    Cyruss Merano
    This document compares the accumulation of nonperforming loans (NPLs) at public and private banks after adverse economic shocks in different regions. It finds that: - In all economies, public banks on average accumulated 0.05-0.1 higher NPLs than private banks in the 3-5 years following a shock. - In advanced economies, there was little difference between public and private bank NPL accumulation. - In emerging economies, public banks accumulated 0.05-0.1 more NPLs than private banks after shocks.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Figure 2.

    3 Comparison of accumulation of nonperforming loans at public banks and private


    banks after adverse shock
    a. All economies b. Advanced economies c. Emerging economies
    0.20 0.20 0.20
    Average difference in NPLs

    Average difference in NPLs

    Average difference in NPLs


    0.15 0.15 0.15

    0.10 0.10 0.10

    0.05 0.05 0.05

    0 0 0

    –0.05 –0.05 –0.05

    –0.10 –0.10 –0.10

    ye r
    +3 ars
    +4 ars
    +5 ars

    s
    ye r
    +3 ars
    +4 ars
    +5 ars

    ye r
    +3 ars
    +4 ars
    +5 ars

    +1 ck
    +1 ck

    +1 ck

    +2 e a
    +2 y e a

    +2 e a

    ar
    ar

    ar

    o
    o

    ye
    ye
    ye
    ye
    ye
    ye

    ye
    ye
    ye
    y

    y
    Sh
    Sh

    Sh

    Coefficient estimate 90% confidence interval

    Source: WDR 2022 team, based on Panizza (2021).


    Note: The graphs plot for three groups of economies the differential response of state-owned and private banks to a given
    GDP growth shock over the five years following the shock. A positive coefficient indicates that state-owned banks accumu-
    late higher nonperforming loans after such a shock. GDP = gross domestic product; NPLs = nonperforming loans.

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