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....
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/670491535545976313/Bank-Credit-Allocation-in-Latin-America-and-the-Caribbean http://hdl.handle.net/10986/30323 |
| Summary: | 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. |
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