Alternative Financial Regimes and Development Banks in Greece 1963-2002: What Have We Learned?
Author: Konstantinos I. Loizos
Abstract
The recent global financial crisis spurred a renewed interest in development banking because of the countercyclical role many of these banks assumed during the crisis. However, there is no agreement in the literature concerning the nature and efficiency of development banks. This paper focuses on their role as agents of institutional change and the concomitant need for their internal transformation as institutional development goes on. The question posed is how development banks’ internal transformation from the traditional development banking model to a modern investment banking model is affected by the political decision on the prevailing financial regime. The paper addresses this question by examining the relationship between development banks and alternative financial regimes in Greece during the period 1963-2002. Useful insights concerning the role of government policy in development banking are drawn.