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Short-term impact of COVID-19 on financial system in a dollarized economy
[Impacto a corto plazo del COVID-19 en el sistema financiero en una economía dolarizada]

Author

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  • Camino-Mogro, Segundo

    (Universidad Espíritu Santo (Ecuador))

Abstract

This paper analyzes the short-term impact of the lockdown policies implemented to stop the spread of the COVID-19 on the Ecuadorian financial system. We use a regression discontinuity in time (RDiT) design jointly with official data. Results show an overall decrease in total deposits (-3.4%) as well as in credits targeted to private sector (-0.60%). In addition, we find heterogeneous results across the different types of credits and deposits being the most affected those related to public institutions.

Suggested Citation

  • Camino-Mogro, Segundo, 2022. "Short-term impact of COVID-19 on financial system in a dollarized economy [Impacto a corto plazo del COVID-19 en el sistema financiero en una economía dolarizada]," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 33(1), pages 3-13, June.
    • Handle: RePEc:pab:rmcpee:v:33:y:2022:i:1:p:3-13
    DOI: https://doi.org/10.46661/revmetodoscuanteconempresa.5556
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    References listed on IDEAS

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    1. Zaremba, Adam & Kizys, Renatas & Aharon, David Y. & Demir, Ender, 2020. "Infected Markets: Novel Coronavirus, Government Interventions, and Stock Return Volatility around the Globe," Finance Research Letters, Elsevier, vol. 35(C).
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    More about this item

    Keywords

    COVID-19; lockdown; financial system; regression discontinuity; Ecuador; bloqueo; sistema financiero; regresión discontinua;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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