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dc.titleCompetition in the Colombian Banking Sector
dc.contributor.authorPerez-Reyna, David
dc.contributor.authorRodríguez Barraquer, Tomás
dc.contributor.authorTovar, Jorge
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2025-03-04T00:03:00
dc.date.issue2025-03-04T00:03:00
dc.description.abstractIn this paper, we analyze the competition in the Colombian banking sector using bank-level monthly balance sheet information. We estimate the changes in measures of market power due to the exogenous introduction of a liquidity regulation. Our results suggest that introducing a net stable funding ratio increased the Lerner index in the short term, thus signaling a higher exercise of market power. We rationalize these changes in a simple theoretical model that allows us to analyze the tightening of liquidity requirements for banks. Our empirical results are consistent with banks with higher market power in the loan market than in the deposit market.
dc.format.extent44
dc.identifier.doihttp://dx.doi.org/10.18235/0013441
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Competition-in-the-Colombian-Banking-Sector.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectBank Loan
dc.subjectInterest Rate
dc.subjectCompetitiveness
dc.subjectRegulation
dc.subjectLiquidity
dc.subjectSmall Business
dc.subjectIndustry
dc.subject.jelcodeE44 - Financial Markets and the Macroeconomy
dc.subject.jelcodeG21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages
dc.subject.jelcodeL13 - Oligopoly and Other Imperfect Markets
dc.subject.keywordsCompetition;Banking sector;Liquidity regulation
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01659
idb.operationRG-K1198
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