EconPapers    
Economics at your fingertips  
 

Efficiency of Lending Sectoral Allocation in Argentina

Ricardo Bebczuk () and Máximo Sangiácomo

Ensayos Económicos, 2007, vol. 1, issue 49, 13-32

Abstract: Based on the information of Argentine banks during the period 1998-2005, this paper analyzes if the bank loan portfolio was efficient in the sense of prioritizing the productive sectors with higher growth and stability. The statistical and econometrical response of the study is an unequivocal no. In fact, the portfolios of loans to companies do not seem to change substantially in the short nor the long term. Consequently, they have not reacted to the profitability and risk conditions offered by the different sectors. This issue is relevant from two perspectives: the first one is of private interest and is linked to whether the banks have maximized their benefit. The second perspective is of social interest and is related to the assumption, rejected in this paper, that credit should accompany (and ideally, anticipate) the growth of the most dynamic sectors. This paper depicts some potential causes of this behavior and analyzes policy alternatives.

Keywords: Argentina; banking credit; companies financing; sectoral allocation of credit (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.bcra.gov.ar/pdfs/investigaciones/Eficac ... cion%20sectorial.pdf (application/pdf)

Related works:
Working Paper: Efficiency of Lending Sectoral Allocation in Argentina (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bcr:ensayo:v:1:y:2007:i:49:p:13-32

Access Statistics for this article

Ensayos Económicos is currently edited by Germán Feldman

More articles in Ensayos Económicos from Central Bank of Argentina, Economic Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Federico Grillo ().

 
Page updated 2023-06-15
Handle: RePEc:bcr:ensayo:v:1:y:2007:i:49:p:13-32