A Loan-Level Analysis of Bank Lending in Mexico

35 Pages Posted: 5 Sep 2019

See all articles by Carlos Cantú

Carlos Cantú

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

Roberto Lobato

Bank of Mexico

Calixto López

Bank of Mexico

Fabrizio Lopez-Gallo

Bank of Mexico

Date Written: July 31, 2019

Abstract

We use loan-level data from the Mexican credit registry to study how bank-specific characteristics in influence credit supply. We explore how these characteristics affect the transmission of monetary policy and their role in building banks' resilience to external shocks. Then, we compare the response of the credit supply of foreign subsidiaries to that of domestic banks. Finally, we study the impact of other micro characteristics on the credit supply and their influence on the transmission of shocks. Our results highlight the importance of banks' strong balance sheets and stable sources of funding for the provision of credit in Mexico. In general, these characteristics shelter banks from shocks.

Keywords: credit registry, credit supply, bank-speci c characteristics, bank lending channel

JEL Classification: E44, E51, E52, E58, G21

Suggested Citation

Cantú García, Carlos and Lobato, Roberto and López, Calixto and Lopez-Gallo, Fabrizio, A Loan-Level Analysis of Bank Lending in Mexico (July 31, 2019). BIS Working Paper No. 802. Available at SSRN: https://ssrn.com/abstract=3436201

Carlos Cantú García (Contact Author)

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

Switzerland

Roberto Lobato

Bank of Mexico ( email )

Av. 5 de Mayo 18
Piso 4
Mexico City, 06059
Mexico

Calixto López

Bank of Mexico ( email )

Av. 5 de Mayo 18
Piso 4
Mexico City, 06059
Mexico

Fabrizio Lopez-Gallo

Bank of Mexico ( email )

Av. 5 de Mayo 18
Piso 4
Col. Centro 06059, 06059
Mexico

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