Evolution of Bank and Non-Bank Corporate Funding in Peru

20 Pages Posted: 24 Nov 2015

See all articles by Renzo Rossini

Renzo Rossini

Central Reserve Bank of Peru

Zenon Quispe

Central Reserve Bank of Peru

Date Written: November 2015

Abstract

Bank lending remains the most important funding source for Peru’s non-bank private sector. However, the corporate bond market is slowly emerging as an additional source of funds for domestic firms. As in other emerging market economies, Peruvian domestic non-financial corporations have been issuing bonds in the international capital markets,4 partly replacing domestic market bond issuances. Offshore issuance is cheaper, owing to quantitative easing in the developed world, and can also be attractive in terms of market efficiency, liquidity and economies of scale, in contrast to the less liquid local market. Although certain non-bank financial entities such as domestic pension funds are in a position to encourage the development of the domestic capital market, these entities are mainly oriented to the international markets.

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

Suggested Citation

Rossini, Renzo and Quispe, Zenon, Evolution of Bank and Non-Bank Corporate Funding in Peru (November 2015). BIS Paper No. 83p, Available at SSRN: https://ssrn.com/abstract=2692774

Renzo Rossini

Central Reserve Bank of Peru

Jirón Miroquesada 441
Lima, Lima 1
Peru

Zenon Quispe (Contact Author)

Central Reserve Bank of Peru ( email )

Jirón Miroquesada 441
Lima, Lima 1
Peru

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