Cooperatives versus traditional banks: the impact of interbank market exclusion
We analyse the desirability of allowing cooperative banks to participate in the interbank market in Chile. We find that it is advisable to allow this if the quality of their governance is not too deficient relative to that of traditional commercial banks. When cooperative banks do participate in the interbank market, both the probability of financial crises and the volatility of gross domestic product (GDP) rise. However, because the inclusion of cooperatives generates large efficiency gains in the financial sector, both GDP and aggregate welfare substantially increase. We conclude that there is no policy reason to unilaterally exclude cooperatives from the Chilean interbank market.
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| Main Authors: | , |
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| Format: | Texto biblioteca |
| Language: | English |
| Published: |
2022-12
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| Subjects: | INSTITUCIONES FINANCIERAS, BANCOS, COOPERATIVAS, ASOCIACIONES DE CREDITO, SERVICIOS FINANCIEROS, MERCADOS, OPERACIONES BANCARIAS, CRISIS FINANCIERA, MODELOS ECONOMETRICOS, FINANCIAL INSTITUTIONS, BANKS, COOPERATIVES, CREDIT UNIONS, FINANCIAL SERVICES, MARKETS, BANKING, FINANCIAL CRISIS, ECONOMETRIC MODELS, |
| Online Access: | https://hdl.handle.net/11362/48814 |
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