Financial Crisis and Sectoral Diversification of Argentine Banks, 1999-2004
AbstractWe explore the impact and evolution of loan portfolio diversification during the 2001-2002 Argentine financial crisis. Using a novel dataset that combines public information on the main activity of the largest 930 Argentine firms with their borrowing from each bank operating in the country during the 1999-2004 period, we find that banks did not modify much their loan portfolio mix as a response to the crisis, even though the econometric results point to a positive effect of sectoral diversification and lending to tradeable sectors on bank profitability and risk mitigation. Our results suggest that larger banks benefit more from diversification that smaller ones, and that the benefits of diversification are greater during the downside of the business cycle.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata in its series Department of Economics, Working Papers with number 060.
Length: 17 pages
Date of creation: Sep 2005
Date of revision:
Focus; Diversification; Bank risk; Bank return.;
Other versions of this item:
- Ricardo Bebczuk & Arturo Galindo, 2007. "Financial crisis and sectoral diversification of Argentine banks, 1999-2004," Applied Financial Economics, Taylor and Francis Journals, vol. 18(3), pages 199-211.
- Arturo Galindo & Ricardo Bebczuk, 2005. "Financial Crisis And Sectoral Diversification Of Argentine Banks, 1999-2004," DOCUMENTOS CEDE 002720, UNIVERSIDAD DE LOS ANDES-CEDE.
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diego Fernandez Felices).
If references are entirely missing, you can add them using this form.