The primary loan customer of state-owned banks in developing and transition economies is often
A)the government that owns the institutions.
B)the neediest businesses in the economy.
C)the start-up companies that will provide job growth.
D)outside corporations that see this as an opportunity to borrow at low rates.

Question

Quizplus · Accepted Answer

State-owned banks are often owned by the government itself, which means that the government is the primary loan customer of these banks. These loans are seen as a means of financing government projects and programs, rather than as a means of providing financing for the private sector.

The Primary Loan Customer of State-Owned Banks in Developing and Transition