Loans growth and banks' risk: new evidence

Borradores de Economia
Número: 
763
Publicado: 
Clasificación JEL: 
G20, G21
Palabras clave: 
Abnormal loan growth, Hazard duration models

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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