The Paradox of Participation: Political Connections and Bank Mortgage Lending

Maria Semenova (HSE University) will present her research on how political connections shape Russian banks’ strategic decisions in government mortgage-support programs.

Drawing on a unique dataset covering 115 banks from 2015–2021, the study examines how different types of political ties such as prior employment in state-owned enterprises or informal contacts within government institutions affect both program enrollment and subsequent lending volumes.

The findings reveal that while certain connections increase the likelihood of formal participation, they often correspond to moderate lending outcomes, highlighting the role of political ties in managing uncertainty and coordinating with public authorities within the state-bank interface.

This guest lecture is open to all NU community members.