Matthey, Astrid - Sonderforschungsbereich Ökonomisches Risiko <Berlin> - 2008
Private banks often blame state guarantees to distort competition by giving public banks the advantage of lower funding … costs. In this paper I show that if borrowers perceive the public bank as supporting economic development, private banks may … disadvantage. The public bank's competitive advantage may be offset, independently of what its true objective function is. Even …