The real effects of banks nationalization – evidence from the UK

How did the nationalization of UK operating banks as a result 2008 banking crisis impact their client firms’ performance? We use unique firm-bank data and propensity score matching technique find that firms borrowed from nationalized show slight decrease in growth investment innovation relative to non-nationalized banks. Interestingly, we slightly increase employment, short-term debt cash holdings. Overall, these were able maintain performance policy intervention.