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

concerns; the question has always been if banks should focus or diversify their assets. In our case, we would like to answer … evidence on this matter for the Colombian banking system. According to the model, we find that once the banks have chosen its … results suggest that there are no possible gains form diversification in bank’s cost and that, on average, the effects of …

Informational constraints may turn the Merton Model for corporate credit risk impractical. Applying this framework to … probabilities due to (i) spreads containing non-credit risk factors, and (ii) systematic undervaluation of the firm’s value. However …-banking firms are not listed. Within the same framework, firms’ debt spread over the risk-free rate may be considered as the market …

plazos. Así, con base en la estimación de la desviación estándar o del VaR (Value at Risk) diario, es usual obtener la …

to in°ation shocks, specially credit rates. Finally, the evidence presented shows the importance of banks …This paper is concerned with interest rate setting by commercial banks and how the transmission of monetary policy is …-2004. Using microdata, the Certi¯cate of Deposit(CD) market and the credit market are studied for a balanced panel of 21 and 16 …

We study the existence of a monetary policy transmission mechanism through banks in Colombia, using monthly banks … bank lending channel (and the risk-taking channel) literature. The impact of short-term interest rates on the growth rate … transmission across banks depending on banks-specific characteristics. …

In this paper we seek to assess the ability of banks to withstand the e?ects of an increase in credit risk as a result … of changes in the macroeconomic environment. To do so we estimate a credit risk model for each loan type as a function of … macroeconomic shock on bank’s performance indicators, such as the NPL ratio, the return on assets, and the capital adequacy ratio …