Abstract
This article aims to investigate the effects of the National Bank for Economic and Social Development (BNDES) on the profitability of assets and equity of Brazilian commercial banks. We use data from state-owned and private commercial banks for the period from 2000 to 2019. The results indicate that an increase in the asset holdings of the BNDES negatively affects the profitability of private banks but does not affect the profitability of state-owned banks. Furthermore, the lines of income from credit operations and services of private banks are negatively affected by an expansion of the BNDES, while trading revenues are positively affected. As for expenses, the larger the BNDES, the higher the financial intermediation expenses for state-owned banks and the lower the operating expenses of private banks.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.