Determinants of South American bank credit: An approach to panel data

The objective of this paper is to analyze the determinants of the domestic banking credit in the South American countries, based on panel data, for the period 2000 to 2016. The results indicate that domestic deposits and liabilities to non-residents contribute positively to the growth of private credit, with domestic funding having a more representative impact than foreign funding. Economic growth leads to a greater demand for credit and an increase in credit, while higher domestic and US interest rates reduce credit growth. Rising inflation also negatively affect private sector credit. In addition, as regards credit composition, domestic deposits and economic growth are the main components of credit expansion, and, in turn, inflation and domestic interest rates contribute negatively

Determinants of South American bank credit: An approach to panel data

The objective of this paper is to analyze the determinants of the domestic banking credit in the South American countries, based on panel data, for the period 2000 to 2016. The results indicate that domestic deposits and liabilities to non-residents contribute positively to the growth of private credit, with domestic funding having a more representative impact than foreign funding. Economic growth leads to a greater demand for credit and an increase in credit, while higher domestic and US interest rates reduce credit growth. Rising inflation also negatively affect private sector credit. In addition, as regards credit composition, domestic deposits and economic growth are the main components of credit expansion, and, in turn, inflation and domestic interest rates contribute negatively

Determinants of South American bank credit: An approach to panel data

This paper aims to analyze the determinants of the domestic banking credit in South American countries, based on panel data, over the period from 2000 to 2016. The results indicate that domestic deposits and liabilities to non-residents contribute positively to the growth of private credit, with domestic funding showing a more representative impact than foreign funding. Economic growth leads to a greater demand for credit and an increase in credit, while higher domestic and US interest rates reduce credit growth. Rising infl ation also negatively affects the private sector credit. Furthermore, regarding the credit composition, domestic deposits and economic growth are the main components of credit expansion and, in turn, infl ation and domestic interest rates contribute negatively.Este trabajo analizó los determinantes del crédito bancario doméstico en los países de América del Sur, con base en datos en panel, para el período de 2000 a 2016. Los resultados indican que los depósitos domésticos y las obligaciones con no residentes contribuyen positivamente al crecimiento del crédito privado. El crecimiento económico eleva la demanda de crédito y tiene como consecuencia el aumento del volumen de crédito, mientras que mayores tasas de interés, doméstica y norteamericana, reducen el crecimiento del crédito. La infl ación también afecta de forma negativa al crédito del sector privado. Además, en cuanto a la composición del crédito, los depósitos domésticos y el crecimiento económico son los principales componentes de la expansión del crédito. La infl ación y tasa de interés doméstica contribuyen negativament