Changes in Colombian Financial Markets Over the Past Decade

24 Pages Posted: 24 Nov 2015

See all articles by Pamela A Cardozo

Pamela A Cardozo

Banco de la República

Hernando Vargas

Banco de la República

Date Written: November 2015

Abstract

This note describes some of the most important changes that have occurred in the Colombian financial system over the past decade. It begins with an assessment of the growth of shadow banking, together with an analysis of the main risks that have emerged in the shadow banking sector and a description of recent regulation aimed at addressing those risks. Following that, salient changes in the balance sheet structure of the traditional banking system are described, together with the risk implications for banks. Then, the paper analyses the issuance of domestic and foreign bonds by Colombian corporations. Finally, the paper examines the way foreign capital inflows feed into local bank deposits in order to assess the relevance for Colombia of the risks highlighted by Powell (2014).

Full publication: What Do New Forms of Finance Mean for EM Central Banks?

Keywords: financial system, shadow banking, bonds issuance, corporate debt

JEL Classification: G20, G21, G28, G30

Suggested Citation

Cardozo, Pamela A and Vargas, Hernando, Changes in Colombian Financial Markets Over the Past Decade (November 2015). BIS Paper No. 83g, Available at SSRN: https://ssrn.com/abstract=2692246

Pamela A Cardozo (Contact Author)

Banco de la República ( email )

Carrera 7 #14-78
3551 de Bogotá
Colombia

Hernando Vargas

Banco de la República ( email )

Carrera 7 #14-78
Bogota
Colombia

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