국내은행의 소유형태에 따른 정치적 영향과 경영성과

Government vs. Private Control and Economic Performance at Korean Banks

This paper compares the performance of banks with and without effective government control in appointment of chief operating officers in Korea using panel data. A privatization program succeeded in spreading ownership of banks widely among the public. Government retention of an ownership stake in an institution meant de facto control by government, decision-making subject to political objectives, and more severe problems of political loan. A model is presented in which political loans are a constraint on banks subject to strong government influence. It is found that banks strongly influenced by government experienced disproportionately bad loan performance and were inefficient compared to privately controlled banks m terms of levels of employment, total costs, and profits.