Bank Credit Allocation in Latin America and the Caribbean

Despite their importance, data on the structure of bank credit by maturity are scarce. For Latin America and the Caribbean, data are particularly difficult to obtain, as few banks report loan maturity data in commercial data sets such as Bankscope....

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Main Authors:	Gutierrez, Eva, Karmali, Nadeem, Sourrouille, Diego
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	LONG-TERM CREDIT LENDING FINANCIAL DEVELOPMENT CREDIT MATURITY MORTGAGE LENDING
Online Access:	http://documents.worldbank.org/curated/en/670491535545976313/Bank-Credit-Allocation-in-Latin-America-and-the-Caribbean http://hdl.handle.net/10986/30323

id	okr-10986-30323
recordtype	oai_dc
spelling	okr-10986-303232021-06-08T14:42:47Z Bank Credit Allocation in Latin America and the Caribbean Gutierrez, Eva Karmali, Nadeem Sourrouille, Diego LONG-TERM CREDIT LENDING FINANCIAL DEVELOPMENT CREDIT MATURITY MORTGAGE LENDING Despite their importance, data on the structure of bank credit by maturity are scarce. For Latin America and the Caribbean, data are particularly difficult to obtain, as few banks report loan maturity data in commercial data sets such as Bankscope. With support from the Association of Supervisors of Banks of the Americas, this study assembled a novel data set on the structure of bank credit allocation in Latin America and the Caribbean covering 21 countries during 2004-14. This paper uses Bankscope and International Financial Statistics data to extended the coverage to more than 100 countries, creating the largest data set so far on credit by maturity. Benchmarking credit structure in Latin America and the Caribbean, the paper finds that the region is financially underdeveloped, because the ratio of short-term credit to gross domestic product is lower than in peers; long-term credit is at par; and consumer and commercial loans are lower. The paper also explores patterns of credit growth through nonparametric regressions. The results indicate that short-term credit grows faster than long-term credit as income grows in low-income countries, but the situation reverses when countries reach high- or middle-income status. Reflecting this trend, the share of mortgage loans rises with income. 2018-09-04T17:14:14Z 2018-09-04T17:14:14Z 2018-08 Working Paper http://documents.worldbank.org/curated/en/670491535545976313/Bank-Credit-Allocation-in-Latin-America-and-the-Caribbean http://hdl.handle.net/10986/30323 English Policy Research Working Paper;No. 8571 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Caribbean Latin America
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	LONG-TERM CREDIT LENDING FINANCIAL DEVELOPMENT CREDIT MATURITY MORTGAGE LENDING
spellingShingle	LONG-TERM CREDIT LENDING FINANCIAL DEVELOPMENT CREDIT MATURITY MORTGAGE LENDING Gutierrez, Eva Karmali, Nadeem Sourrouille, Diego Bank Credit Allocation in Latin America and the Caribbean
geographic_facet	Latin America & Caribbean Caribbean Latin America
relation	Policy Research Working Paper;No. 8571
description	Despite their importance, data on the structure of bank credit by maturity are scarce. For Latin America and the Caribbean, data are particularly difficult to obtain, as few banks report loan maturity data in commercial data sets such as Bankscope. With support from the Association of Supervisors of Banks of the Americas, this study assembled a novel data set on the structure of bank credit allocation in Latin America and the Caribbean covering 21 countries during 2004-14. This paper uses Bankscope and International Financial Statistics data to extended the coverage to more than 100 countries, creating the largest data set so far on credit by maturity. Benchmarking credit structure in Latin America and the Caribbean, the paper finds that the region is financially underdeveloped, because the ratio of short-term credit to gross domestic product is lower than in peers; long-term credit is at par; and consumer and commercial loans are lower. The paper also explores patterns of credit growth through nonparametric regressions. The results indicate that short-term credit grows faster than long-term credit as income grows in low-income countries, but the situation reverses when countries reach high- or middle-income status. Reflecting this trend, the share of mortgage loans rises with income.
format	Working Paper
author	Gutierrez, Eva Karmali, Nadeem Sourrouille, Diego
author_facet	Gutierrez, Eva Karmali, Nadeem Sourrouille, Diego
author_sort	Gutierrez, Eva
title	Bank Credit Allocation in Latin America and the Caribbean
title_short	Bank Credit Allocation in Latin America and the Caribbean
title_full	Bank Credit Allocation in Latin America and the Caribbean
title_fullStr	Bank Credit Allocation in Latin America and the Caribbean
title_full_unstemmed	Bank Credit Allocation in Latin America and the Caribbean
title_sort	bank credit allocation in latin america and the caribbean
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/670491535545976313/Bank-Credit-Allocation-in-Latin-America-and-the-Caribbean http://hdl.handle.net/10986/30323
_version_	1764471697624268800

Bank Credit Allocation in Latin America and the Caribbean

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