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| dc.title | The Effects of Lending Quotas |
| dc.contributor.author | Vera-Cossio, Diego A. |
| dc.contributor.author | Garbay Flores, Sergio Andres |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.coverage | Bolivia |
| dc.date.available | 2026-08-01T00:08:00 |
| dc.date.issue | 2026-08-01T00:08:00 |
| dc.description.abstract | We study the eects of sectoral lending quotas in Bolivia, which required lenders to allocate a minimum share of their portfolios to priority sectors. Exploiting the timing of the reform and variation in pre-policy compliance at the lender and locality levels, we estimate impacts on credit markets and economic activity. To meet the quotas, lenders compressed their nancial margins and expanded their branch networks. The resulting credit expansion outpaced deposit growth, raising loan-to-deposit ratios persistently, leaving lenders more exposed to liquidity shocks. At the local level, the credit expansion raised household income by 7.8%, driven largely by self-employment in non-priority sectorsthe very sectors the policy did not target. Our ndings illustrate how sectoral policies can generate important trade-os and equilibrium consequences that extend well beyond their intended objectives. |
| dc.format.extent | 79 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0014438 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/The-Effects-of-Lending-Quotas.pdf |
| dc.language.iso | en |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Credit |
| dc.subject | Bank Loan |
| dc.subject | Loan Portfolio |
| dc.subject | Municipal Government |
| dc.subject | Microfinance Institution |
| dc.subject | Wage |
| dc.subject | Small Business |
| dc.subject | Labor Force |
| dc.subject.jelcode | G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages |
| dc.subject.jelcode | G28 - Government Policy and Regulation |
| dc.subject.jelcode | O16 - Financial Markets • Saving and Capital Investment • Corporate Finance and Governance |
| dc.subject.jelcode | R11 - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes |
| dc.subject.jelcode | D21 - Firm Behavior: Theory |
| dc.subject.jelcode | O25 - Industrial Policy |
| dc.type | Working Papers |
| idb.identifier.pubnumber | IDB-WP-01847 |
| idb.operation | RG-K1415 |