Should Governments Have Their Own Banks?

Hendrik Hakenes
Profile Picture of - Hendrik Hakenes

Hendrik Hakenes

Abstract information

The model presented in this video is designed to compare different options for the relation between banks and the public sector and different types of subsidies regarding their effects on social welfare. Comparing five options for interlinkage shows that the best choice often are development banks, if they are not allowed to compete with the private banking sector. In this case firms that would not get money from private banks are granted state aid, HENDRIK HAKENES explains, and the private banking sector is not endangered.

DOI:

https://doi.org/10.21036/LTPUB10024

Researcher

Hendrik Hakenes is Professor of Finance at the University of Bonn. Having completed his PhD at the University of Münster, Hakenes has also held research positions at the Max Planck Institute for Research on Collective Goods, the University of Minnesota and Leibniz University Hannover. Hakenes’s research focuses on banking and finance and industrial economics. An editor for Credit and Capital Markets, since 2018 Hakenes has been principal investigator on a special research project based at the University of Mannheim: “Economic Perspectives on Societal Challenges: Equality of Opportunity, Market Regulation, and Financial Stability”.

Institution information

University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

The University of Bonn is one of Germany’s most prestigious and research-intensive institutions, consistently ranked among the top universities worldwide. Founded in 1818, it is celebrated for its academic excellence, particularly in mathematics and economics, and boasts a record of producing several Nobel Laureates and Fields Medalists. Located in the former German capital, the university is integrated into the city’s historic fabric, offering a vibrant international environment and a diverse range of programs across seven faculties. As a member of the elite U15 group, it remains a global leader in innovation and higher education.
University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)
Cover Photo of - University of Bonn (Rheinische Friedrich-Wilhelms-Universität Bonn)

Original Publication

The Politician and His Banker-How to Efficiently Grant State Aid

Christa Hainz,

Hendrik Hakenes

Published in

Citation

Hendrik Hakenes, 

Latest Thinking, 

Should Governments Have Their Own Banks?, 

https://doi.org/10.21036/LTPUB10024, 

Credits:

© Hendrik Hakenes 

and Latest Thinking

This work is licensed under CC-BY 4.0