How Do Bank-Specific Characteristics Affect Lending? New Evidence Based on Credit Registry Data from Latin America

36 Pages Posted: 5 Sep 2019

See all articles by Carlos Cantú

Carlos Cantú

Bank for International Settlements (BIS) - Representative Office for the Americas

Stijn Claessens

Bank for International Settlements (BIS)

Leonardo Gambacorta

Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR)

Date Written: July 31, 2019

Abstract

This paper focuses on the recent changes in banking systems and how bank-specific characteristics have affected credit supply in five Latin American countries (Brazil, Chile, Colombia, Mexico and Peru). We use detailed credit registry data and apply a common empirical strategy. Since data confidentiality prevents the pooling of the data, we use meta-analysis techniques to summarise the results. We find that large and well-capitalised banks with low risk indicators, stable sources of funding, and a commercial business model generally supply more credit. Such banks are also more sheltered from monetary and global shocks, with the role of specific characteristics varying by the type of shock.

Keywords: bank business models, bank lending, credit registry data, meta-analysis

JEL Classification: E51, E58, G21

Suggested Citation

Cantú García, Carlos and Claessens, Stijn and Gambacorta, Leonardo, How Do Bank-Specific Characteristics Affect Lending? New Evidence Based on Credit Registry Data from Latin America (July 31, 2019). BIS Working Paper No. 798. Available at SSRN: https://ssrn.com/abstract=3436176

Carlos Cantú García (Contact Author)

Bank for International Settlements (BIS) - Representative Office for the Americas ( email )

Switzerland

Stijn Claessens

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

Leonardo Gambacorta

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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