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Submitted by Sole Martinez Peria on
I tend to agree with Erik's middle ground thinking on the question of whether it is good to have state-owned banks. I think they have been primarily successful in countries that have good institutions and also in situations where their main role is not to substitute private banks but rather to help bridge gaps in the provision of financial services (like the case of Nafin in Mexico). My sense is that cases like banco de Estado are outliers. In general, research that Asli, Thorsten and I have done on the factors correlated with financial outreach indicates that there is no significant association between greater government ownership of banks and financial access across countries.