Bank lending, risk taking, and the transmission of monetary policy : new evidence for Colombia

Borradores de Economia
Number: 
772
Published: 
Classification JEL: 
E5, E52, E59, G21
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

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We study the existence of a monetary policy transmission mechanism through banks in Colombia, using monthly banks' balance sheet data for the period 1996:4 – 2012:12. We obtain results which are consistent with the basic postulates of the bank lending ch