The effect of types of ownership on bank lending growth in the asean-5 countries during the global financial crisis and the european sovereign debt crisis

This study aims to identify the effect of banks’ types of ownership on the growth of bank lending in the ASEAN-5 region during the global financial crisis (2008-2009) and the sovereign debt crisis in Europe (2010-2013). Three types of bank ownership were used in this study: state; domestic private; and foreign. We find that state-owned banks had higher lending growth than private banks during the global crisis period, and foreignowned banks had lower bank lending growth than domestic private banks in the ASEAN- 5 during the European sovereign debt crisis. However, during the global financial crisis, foreign-owned banks in ASEAN-5 lent more and had higher lending growth than stateowned and domestic private banks. Also, the behavior of foreign and domestic private banks in ASEAN-5 is different during the crisis. The banking industry in the ASEAN-5 region is more advanced and has unique characteristics, compared to the industry in other ASEAN countries. Different types of banking ownership show distinctive incentives, organization, and policy structures. We focus on this aspect, especially for the ASEAN-5 region during the 2008-2009 crisis.