Credit Stagnation in Latin America
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
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.
Series:
Working Paper No. 2002/053
Subject:
Bank credit Banking Credit Credit booms Credit risk Financial institutions Financial regulation and supervision Loans Money
English
Publication Date:
March 1, 2002
ISBN/ISSN:
9781451847390/1018-5941
Stock No:
WPIEA0532002
Pages:
49
Please address any questions about this title to publications@imf.org