Interstate banking networks and the synchronization of businesscycles across brazilian states
DOI:
https://doi.org/10.1590/1980-53575636grbmKeywords:
Interstate banking networks, Synchronization, CreditAbstract
We study the relationship between interstate banking networks and the synchronization of business cycles across pairs of Brazilian states. We use ESTBAN data from 2000 to 2019 to construct a measure of banking connectivity between Brazilian federative units and estimate its association with the synchronization of state-level business cycles. Our results show that, when mediated by the network generated by public banks, interstate differences in bank branch productivity are positively associated with the convergence of state growth rates. Conversely, within the private banking network, this association is reversed, meaning that interstate differences in bank branch productivity are negatively related to the synchronization of state business cycles. We also find evidence that the heterogeneous effect of the network generated by public banks is attenuated during periods of national economic crisis.
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Copyright (c) 2026 Giulio Cézar Palomares da Silva, Ricardo Buscariolli Pereira, Bruno de Paula Rocha, Maximiliano Barbosa da Silva
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Atualizado em 14/08/2025