This chapter discusses different ways governments intervene in banking and credit markets, including through state-owned banks and credit guarantee schemes. It notes that state banks were created to fill market gaps and provide SME financing. Countries used different approaches, from expanding lending by state banks to implementing credit guarantee programs. The chapter also discusses debates around the merits of direct government intervention versus relying on market forces. It analyzes the role of several countries' state banks and credit schemes in mitigating the impacts of economic crises.