Public Banks in the Age of Financialization

Edited by Christoph Scherrer, Professor Emeritus of Globalization and Politics, University of Kassel and Associate Fellow, Global Labour University, Germany

• Contents:IntroductionChristoph Scherrer Part I Justifications for Public Banks 1. Beyond the Market Failure Argument: Public Banks as Stability Anchors Ana Rosa Ribeiro de Mendonça and Simone Deos 2. Back to the Future of Alternative Banks and Patient CapitalKurt von Mettenheim and Olivier Butzbach Part II Public Banks as stability anchors: Case Studies3. Facing The 2008 Crisis: Brazilian Central Bank and Public Banking System as Minskyan ‘Big Banks’Simone Deos and Ana Rosa Ribeiro de Mendonça 4. Federal Public Banks in Brazil: Historical Overview and Role in the Recent CrisisSimone Deos, Camilla Ruocco and Everton Sotto Tibiriçá Rosa 5. Public Banks and Recent Anticyclical Policies: A comparison of the experiences of Brazil and ChileAna Rosa Ribeiro de Mendonça and Brunno Henrique Sibin Part III Public Banks and Development6. The Role of the Brazilian Development Bank (BNDES) in the Brazilian Development PolicyAdriana Nunes Ferreira and Everton Sotto Tibiriçá Rosa 7. Public Banks and Financial Intermediation in India: The Phases of Nationalisation, Liberalisation and Inclusion Pallavi Chavan 8. Governance of Development Banks under UncertaintyTamilla Tagieva Part IV Political Attacks on Public Banks in Europe9. Savings banks and Landesbanken in the German Political Economy. The Long Struggle Between Private and Public BanksDaniel Seikel 10. Marginalizing the German Savings Banks through the European Single Market Halyna Semenyshyn Part V Keeping public banks accountable to the public 11. Governance Makes a Difference: A Case Study of the German Landesbanken Helaba and WestLBXeniya Polikhronidi and Christoph Scherrer 12. Changing Structure of Non-Performing Loans: The Case of Indian Public BanksMeenakshi Rajeev 13. The Stake-holder Governance of Microfinance Magdalena Dieterle14. The Challenge of Keeping Public Banks on MissionChristoph Scherrer Index

'A powerful and persuasive case for the continuing importance of public banks. Economists and policymakers cannot afford to ignore this comprehensive, insightful and careful discussion of the experience of public banking in both developed and developing countries.'--Jayati Ghosh, Jawaharlal Nehru University, India'Wonderful and timely contribution. The turmoil in the global economy in the aftermath of the 2007 crisis underscored the need for financial institutions able to promote stable, sustainable and inclusive growth. This book highlights the potential unique contribution of public banks to that end. Rich and nuanced empirical work from Brazil, India and Germany is offered to support the argument. The authors go beyond ideological controversies to reveal with impeccable scholarship the important role of public banks as anchors of economic stability and development. The crucial need of governance mechanisms that guarantee accountability to the public also emerges from the reading.'--Mariano Laplane, Centre for Strategic Studies and Management, Brazil'The global financial crisis has shown the fragility of private banks. The question is whether public banks are the panacea contributing to a more sustainable financial system. The editors gathered many of the best analysts to critically examine this proposition. For this purpose, they use new interpretative theoretical insights to interrogate case studies from Brazil, Germany, and India to understand the role of public banks at different development stages. In a persuasive manner, the authors demonstrate the benefits of public banks, but at the same time point out that public banks are not immune to governance failures. Focusing on irresponsible management behavior is a much needed, and more nuanced, intervention in the sterile debate of private versus public banks.'--Brigitte Young, University of Muenster, Germany