Cabrera, Wilmar; Rueda, Javier Gutiérrez; Mendoza, … - Banco de la Republica de Colombia
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 … macroeconomic shock on bank’s performance indicators, such as the NPL ratio, the return on assets, and the capital adequacy ratio …. The results suggest that most Colombian banks are able to withstand a large shock to economic activity. We also perform a …