Post-Crisis Bank Behavior: Lessons from Mercosur

Did the occurrence of systemic banking crises in the 1990s and 2000s significantly alter the behavior of banks in the Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the Mercosur region. To our knowledge, this is the first paper...

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Bibliographic Details
Main Authors: Fund, International Monetary, Mlachila, Montfort
Format: eBook Book
Language:English
Published: Washington International Monetary Fund 01.01.2010
Edition:1
Subjects:
Bank Behavior
Bank Credit
Bank Crisis
Banking Crisis
Banks and banking
Commercial Banks
Convergence
Convergence (Economics)
Credit Restraint
Credit Risk
Economic Models
Excess Liquidity
Mercosur
Profits
Brazil
Argentina
Paraguay
Uruguay
Private sector
ISBN:1451961618, 9781451961614, 145191850X, 9781451918502, 9781452798486, 1452798486
Online Access:Get full text
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Summary:Did the occurrence of systemic banking crises in the 1990s and 2000s significantly alter the behavior of banks in the Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the Mercosur region. To our knowledge, this is the first paper to apply the convergence methodology-which is common in the growth literature-to post-crisis bank behavior. Using a panel dataset of commercial banks during the period 1990-2006, we analyze the impact of crises on four sets of financial indicators of bank behavior-profitability, maturity preference, credit supply, and risk. The paper finds that most indicators of bank behavior, such as profitability, in fact revert to previous or more normal levels. However, a key finding of the paper is that private sector intermediation is significantly reduced for prolonged periods of time and that high levels excess liquidity persist well after the crisis.
ISBN:1451961618
9781451961614
145191850X
9781451918502
9781452798486
1452798486