Exploring the Relationship Between Credit Policies and Results of the Spanish Banking Ex-Post

Magazines University and Business, Vol. 6, No. 14, June 2008

20 Pages Posted: 23 Nov 2009 Last revised: 28 May 2014

See all articles by Francisco J. Ibáñez-Hernández

Francisco J. Ibáñez-Hernández

University of the Basque Country

Miguel A. Peña-Cerezo

Independent

Andres Araujo

Independent; University of the Basque Country

Date Written: June 15, 2008

Abstract

This paper analyzes the relationship between bank credit policies and their ex-post performance. Literature review reveals that, sometimes, credit markets can be affected by a stronger endogenous component that usually assumed. We propose that the growth speed of the bank credit portfolio in expansive cycles is related to its ex-post performance once the recession cycle begins. The analysis outcomes reflect a strong relation between the speed in the expansion of the credit and a poorer behaviour of the benefits, returns and insolvencies.

Note: Paper is in Spanish

Keywords: Credit risk, credit policies, banking profitability, procyclicality

Suggested Citation

Ibáñez Hernández, Francisco Jaime and Peña-Cerezo, Miguel A. and Araujo, Andres and Araujo, Andres, Exploring the Relationship Between Credit Policies and Results of the Spanish Banking Ex-Post (June 15, 2008). Magazines University and Business, Vol. 6, No. 14, June 2008 , Available at SSRN: https://ssrn.com/abstract=1510410

Francisco Jaime Ibáñez Hernández (Contact Author)

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Miguel A. Peña-Cerezo

Independent ( email )

Andres Araujo

Independent ( email )

Avda. Lehendakari Aguirre, 83
Bilbao, 48015
Spain
0034946013704 (Fax)

University of the Basque Country ( email )

Avda. Lehendakari Aguirre, 83
Bilbao, 48015
Spain
0034946013704 (Fax)

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