Loans growth and banks' risk: new evidence

Borradores de Economia
Number: 
763
Published: 
Classification JEL: 
G20, G21

The most recent

Pedro Pablo Calderon-Camacho, Celina Gaitán-Maldonado, Nicolle Valentina Herrera-Pinto, Mario A. Ramos-Veloza
Franky Juliano Galeano-Ramírez, Nicolás Martínez-Cortés, Hernán Dario Perdomo-Sánchez, Marlon Salazar
Catalina Granda-Carvajal, Jesús Enrique Morales-Piñero

This study provides new evidence on the relationship between abnormal loan growth and banks' risk taking behavior, using data from a rich panel of Colombian financial institutions. We show that abnormal credit growth during a prolonged period of time lead