Minimum quantitative requirements for commercial lending with interest rate caps: The case of Argentina

Mario Ravioli ()
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Mario Ravioli: Universitat Rovira i Virgili

No 4006626, Proceedings of International Academic Conferences from International Institute of Social and Economic Sciences

Abstract: In 2012, Argentina passed a regulation imposing a minimum level of commercial lending on large banks. The regulation was meant to boost lending to SMEs in less favored regions via improved credit availability and capped interest rates, with the ultimate goal of spurring private investment. This paper studies two outcomes of the aforementioned regulation. First, using a difference-in- difference setup, it studies the degree to which this regulation fostered credit supplied by those banks affected by the new rules, and the speed of loan creation.Second, it investigates the performance of loans created as a result of the regulation. Overall, the paper highlights the potential bright and dark sides of imposing supply of banking services and products on private banks.

Keywords: Interest rate caps; Priority lending schemes; Directed credit; SMEs (search for similar items in EconPapers)
JEL-codes: E58 G21 G28 (search for similar items in EconPapers)
Pages: 1 page
Date: 2016-08
New Economics Papers: this item is included in nep-ban, nep-mac and nep-mon
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Citations: View citations in EconPapers (1)

Published in Proceedings of the Proceedings of the 24th International Academic Conference, Barcelona, Aug 2016, pages 310-310

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Persistent link: https://EconPapers.repec.org/RePEc:sek:iacpro:4006626

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