EconPapers    
Economics at your fingertips  
 

Credit Cycles, Credit Risk and Countercyclical Loan Provisions

Martha López (), Fernando Tenjo Galarza () and Hector Zarate-Solano

BORRADORES DE ECONOMIA from BANCO DE LA REPÚBLICA

Abstract: In this paper we investigate the impact of rapid credit growth on ex ante credit risk. We present micro-econometric evidence of the positive relationship between rapid credit growth and deterioration in lending portfolios: Loans granted during boom periods have higher probability of default than those granted during periods of slow credit growth. In addition, given their importance for macroprudential policy, we evaluate the effectiveness of the implementation of the countercyclical loan provisions. We find a negative relationship between the amplitude of credit cycles and this kind of macroprudential tool.

Keywords: Ex ante credit risk; credit cycles; countercyclical provisioning (search for similar items in EconPapers)
JEL-codes: E32 E51 E60 G18 G21 (search for similar items in EconPapers)
Pages: 26
Date: 2013-11-05
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/be_788.pdf
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://www.banrep.gov.co/sites/default/files/publicaciones/archivos/be_788.pdf [301 Moved Permanently]--> https://www.banrep.gov.co/sites/default/files/publicaciones/archivos/be_788.pdf)

Related works:
Journal Article: Credit Cycles, Credit Risk and Countercyclical Loan Provisions (2014) Downloads
Journal Article: Credit Cycles, Credit Risk and Countercyclical Loan Provisions (2014) Downloads
Working Paper: Credit Cycles, Credit Risk and Countercyclical Loan Provisions (2013) 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:col:000094:011092

Access Statistics for this paper

More papers in BORRADORES DE ECONOMIA from BANCO DE LA REPÚBLICA
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera ().

 
Page updated 2022-09-05
Handle: RePEc:col:000094:011092