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
Date Written: June 15, 2008
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
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