National development banks and loan contract terms: Evidence from syndicated loans

Gong, Di; Xu, Jiajun; Yan, Jianye

doi:10.1016/j.jimonfin.2022.102763

Cited by 4 publications

(1 citation statement)

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“…Yet this approach fails to realize that different financial arrangements may have distinct comparative advantages in meeting specific financing needs of the real economy. For example, development banks are better positioned to provide long-term finance than are commercial banks (Gong et al, 2023;Hu et al, 2022;Schclarek et al, 2023). Development banks usually do not take household deposits and rely on sovereign creditworthiness to issue longterm bonds on capital markets, which enables development banks to better solve the problem of maturity mismatch.…”

Section: Introductionmentioning

confidence: 99%

New Structural Financial Economics

Lin,

Xu,

Yang

et al. 2024

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This Element proposes an alternative framework for rethinking the role of finance in serving the real economy from the perspective of New Structural Financial Economics. It challenges the conventional wisdom that developing countries should take the financial structure of developed countries as the benchmark and financial structure does not matter in spurring long-run economic development. As a sub-discipline of New Structural Economics, New Structural Financial Economics has three tenets. First, examining the appropriate financial structure should take an economy's factor endowment structure as the starting point of analysis, which identifies its latent comparative advantage. Second, the appropriate financial structure is determined by the financing needs of the prevailing production structure. Third, a government should provide development financing to address market failures, and make tailored financial regulations in line with the characteristics of specific financial arrangements. This title is also available as Open Access on Cambridge Core.

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Section: Introductionmentioning

confidence: 99%