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Efficiency of Lending Sectoral Allocation in Argentina


  • Ricardo Bebczuk

    (Central Bank of Argentina)

  • Máximo Sangiácomo

    () (Central Bank of Argentina)


Based on the information of Argentine banks during the period 1998-2005, this paper analyzes if the bank loan portfolio was efficient in the sense of prioritizing the productive sectors with higher growth and stability. The statistical and econometrical response of the study is an unequivocal no. In fact, the portfolios of loans to companies do not seem to change substantially in the short nor the long term. Consequently, they have not reacted to the profitability and risk conditions offered by the different sectors. This issue is relevant from two perspectives: the first one is of private interest and is linked to whether the banks have maximized their benefit. The second perspective is of social interest and is related to the assumption, rejected in this paper, that credit should accompany (and ideally, anticipate) the growth of the most dynamic sectors. This paper depicts some potential causes of this behavior and analyzes policy alternatives.

Suggested Citation

  • Ricardo Bebczuk & Máximo Sangiácomo, 2007. "Efficiency of Lending Sectoral Allocation in Argentina," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(49), pages 13-32, October -.
  • Handle: RePEc:bcr:ensayo:v:1:y:2007:i:49:p:13-32

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    References listed on IDEAS

    1. Joe Peek & Eric S. Rosengren, 2005. "Unnatural Selection: Perverse Incentives and the Misallocation of Credit in Japan," American Economic Review, American Economic Association, vol. 95(4), pages 1144-1166, September.
    2. Andrea Schertler & Claudia Buch & Natalja Westernhagen, 2006. "Heterogeneity in lending and sectoral growth: evidence from German bank-level data," International Economics and Economic Policy, Springer, vol. 3(1), pages 43-72, April.
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    More about this item


    Argentina; banking credit; companies financing; sectoral allocation of credit;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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