The Impact Of Domestic Investors’ Participation In Government Debt On Bank Loans To The Private Sector: A Cross-Country Study

Authors

Justina Adamanti, Universitas Indonesia, IndonesiaFollow
Sugiharso Safuan, Universitas Indonesia, IndonesiaFollow
Zaäfri Ananto Husodo, Universitas Indonesia, IndonesiaFollow

Document Type

Article

Abstract

This study analyzes the impact of domestic investors’ participation in government debt on bank loans to the private sector in advanced and emerging countries. We find that domestic bank participation in government debt has a more profound negative impact on bank loans to the private sector in advanced than in emerging countries. Meanwhile, domestic non-bank participation in government debt only negatively impacts bank loans to the private sector in emerging countries. While both domestic bank and non-bank participation in government debt have a negative impact on bank loans to the private sector in emerging countries, the latter has a weaker impact.

Recommended Citation

Adamanti, Justina; Safuan, Sugiharso; and Husodo, Zaäfri Ananto (2022) "The Impact Of Domestic Investors’ Participation In Government Debt On Bank Loans To The Private Sector: A Cross-Country Study," Bulletin of Monetary Economics and Banking: Vol. 25: No. 3, Article 1.
DOI: https://doi.org/10.21098/bemp.v25i3.2121
Available at: https://bulletin.bmeb-bi.org/bmeb/vol25/iss3/1

First Page

275

Last Page

290

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Universitas Indonesia