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Evidence of Bank Lending Channel for Argentina and Colombia

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  • José Gómez González
  • Fernando Grosz

Abstract

In this paper we find empirical evidence of bank lending channel for Colombia and Argentina. As for Argentina, we do not find evidence that changes in the interbank interest rate affect the growth rate of total loans directly. However, it does indirectly through interactions: the interbank interest rate affects the loan supply through its interactions with capitalization and liquidity. As for Colombia, there is direct bank lending channel, which is reinforced through interactions with capitalization and liquidity. Also, using a panel data of more than 3300 firms, we provide additional support to the existence of a bank lending channel for Colombia.

Suggested Citation

  • José Gómez González & Fernando Grosz, 2006. "Evidence of Bank Lending Channel for Argentina and Colombia," Borradores de Economia 396, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:396
    DOI: 10.32468/be.396
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    Cited by:

    1. José E. Gómez González & Paola Morales Acevedo, 2009. "Bank Lending Channel of Monetary Policy: Evidence for Colombia, Using a Firms´ Panel," Borradores de Economia 5219, Banco de la Republica.
    2. Ximena Chavarro-Sanchez & Deicy Cristiano-Botia & Jose E. Gomez-Gonzalez & Eliana González-Molano & Carlos Huertas-Campos, 2015. "Evaluación de la transmisión de la tasa de interés de referencia a las tasas de interés del sistema financiero," Borradores de Economia 874, Banco de la Republica de Colombia.
    3. Carolina Ortega Londono & Diego Restrepo, 2018. "Transmission of Monetary Policy and Bank Heterogeneity in Colombia," Documentos de Trabajo de Valor Público 16987, Universidad EAFIT.
    4. Jorge Mario Uribe Gil & Isabel Espinosa Castillo, 2018. "Efectos asimétricos de cambios en la tasa de interés sobre empresas del sector manufacturero colombiano," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 10(1), pages 173-187, February.
    5. Bustamante, José & Nivín, Rafael & Cuba, Walter, 2019. "Determinantes del crecimiento del crédito y el canal de préstamo bancario en el Perú: un análisis a nivel de préstamos," Revista Moneda, Banco Central de Reserva del Perú, issue 180, pages 24-28.
    6. James L Butkiewicz & Zeliha Ozdogan, 2014. "Financial crisis, monetary policy reform and the monetary transmission mechanism in Turkey," Middle East Development Journal, Taylor & Francis Journals, vol. 6(1), pages 66-83, January.
    7. Jose E. Gomez-Gonzalez & Ali M. Kutan & Jair N. Ojeda-Joya & María Camila Ortiz, 2016. "The Bank Lending Channel of Monetary Policy: Does the Financial Structure of Banks Matter," Borradores de Economia 953, Banco de la Republica de Colombia.
    8. repec:col:000094:010860 is not listed on IDEAS
    9. Nidia Ruth Reyes & José Eduardo Gómez G. & Jair Ojeda Joya, 2013. "Bank Lending, Risk Taking, and the Transmission of Monetary Policy: New Evidence for Colombia," Borradores de Economia 10970, Banco de la Republica.
    10. Fernando Tenjo Galarza & Enrique López Enciso & Héctor Zárate Solano, 2015. "Riesgo de crédito y la transmisión de la política monetaria en Colombia," Borradores de Economia 12616, Banco de la Republica.
    11. José Bustamante & Walter Cuba & Rafael Nivin, 2019. "Determinants of credit growth and the bank-lending channel in Peru: A loan level analysis," BIS Working Papers 803, Bank for International Settlements.
    12. International Monetary Fund, 2010. "Colombia: Selected Issues Paper," IMF Staff Country Reports 2010/106, International Monetary Fund.
    13. Muhamed Zulkhibri, 2013. "Bank-characteristics, lending channel and monetary policy in emerging markets: bank-level evidence from Malaysia," Applied Financial Economics, Taylor & Francis Journals, vol. 23(5), pages 347-362, March.
    14. David Rodríguez-González & Inés María Ulloa-Villegas, 2020. "Global financial crisis and its effects on the bank lending channel in the Colombian economy," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 93, pages 261-296, Julio-Dic.
    15. Carolina Ortega Londono, 2018. "Transmission of Monetary Policy and Bank Heterogeneity in Colombia," Documentos de Trabajo de Valor Público 16792, Universidad EAFIT.

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    More about this item

    Keywords

    Monetary Transmission; Bank Lending Channel; Argentina; Colombia;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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