This article uses a partial adjustment model to assess about how banks choose their regulatory capital levels. Among the obtained results, it was found that there exists a target level for at least half of the examined banks, and that both the target capital ratio and the adjustment speed...

We investigate the impact of the banking system concentration on the perception of financial institutions interdependencies, as measured by the correlations of their return on assets. This correlation is observed by the market, and may provide an indicator of systemic risk potential, which we...

This paper examines the impact of payroll debit loans - a Brazilian new modality of credit - on interest rates. The main characteristic of the new credit operation is the enforcement of a direct deduction of amortizations from personal payroll checks. Adapting a matching strategy proposed by...

We use bank-level data to model the demand for bank services in Brazil following the discrete choice literature. A multinomial logit specification is used to study the demand for time deposits, for an aggregate of demand and passbook savings deposits, and for loans. Market for each of these...

Reserve requirements are used as an additional policy instrument in many countries. The present paper examines whether the use of this instrument helps to improve macroeconomic stability. The analysis is conducted by estimating and simulating a semi structural model for the Brazilian economy....

We study the role of court enforcement in shaping the impact of a financial reform on bank loans. We use micro-data on loans to manufacturing firms from the National Credit Registry of the Central Bank of Brazil matched with a measure of court congestion at judicial district level. We find that,...

This paper addresses the determinants of interest rates in the Brazilian banking market. The results suggest that banks fully adjust their loan interest rates to a change in the monetary policy rate, but we also observe a rigid short-term response for some loan product categories. The study...