Credit Stagnation in Latin America

This study examines the recent marked slowdown in bank credit to the private sector in Latin America. Based on the study of eight countries (Argentina, Bolivia, Brazil, Chile, Colombia, Peru, Mexico, and Venezuela), the magnitude of the slowdown is documented, comparing it to historical behavior and...

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Bibliographic Details
Main Author: Barajas, Adolfo
Other Authors: Steiner, Roberto
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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300 |a 49 pages 
651 4 |a Mexico 
653 |a Depository Institutions 
653 |a Credit 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Industries: Financial Services 
653 |a Monetary economics 
653 |a Financial institutions 
653 |a Value of Firms 
653 |a Micro Finance Institutions 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Mortgages 
653 |a Money 
653 |a Loans 
653 |a Financial risk management 
653 |a Credit risk 
653 |a Capital and Ownership Structure 
653 |a Goodwill 
653 |a Banks and Banking 
653 |a Financial regulation and supervision 
653 |a Bank credit 
653 |a Banking 
653 |a Credit booms 
653 |a Financial Risk and Risk Management 
653 |a Financing Policy 
653 |a Money and Monetary Policy 
653 |a Financial services law & regulation 
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520 |a This study examines the recent marked slowdown in bank credit to the private sector in Latin America. Based on the study of eight countries (Argentina, Bolivia, Brazil, Chile, Colombia, Peru, Mexico, and Venezuela), the magnitude of the slowdown is documented, comparing it to historical behavior and to slowdown episodes in other regions of the world. Second, changes in bank balance sheets are examined to determine whether the credit slowdown is merely a reflection of a slowdown in bank deposits, or whether the asset side has changed. Third, following an econometric disequilibrium approach used in recent studies of credit slowdowns in East Asia and Finland, the paper investigates possible causes for the slowdown in three countries: Colombia, Mexico, and Peru. While both supply and demand factors appear to have played key roles, their relative importance has varied across countries