developing a better understanding of credit and its mechanisms. A rapidly growing strand of the literature views banks as facing … funding restrictions that condition their borrowing to a risk-based capital constraint which, in turn, affects bank lending …. This work explores the way banks in Colombia manage their balance sheet and sheds light into the dynamics of credit and …

This paper presents two versions of a spatial competition model forthe banking sector. The first version, describes a … framework that fol-lows closely Salop´s spatial competition model. This version is modi-fied in the second part by introducing … the loan market and default riskprobabilities for credit. Both theoretical approaches are analyzed em-pirically for the …

market power and interest rate volatility. Results indicate that interest margins are mainly affected by credit institutions …' inefficiency and to a lesser extent by credit risk exposure and market power. This implies that public policies should be oriented …

This paper presents a multimarket spatial competition oligopoly model for the Colombian deposit market, in line with …