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The Cyclical Behavior of External Indebtedness: The Case of Foreign and Domestic Banks in Colombia

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  • Daniel Esteban Osorio Rodíguez
  • Mauricio Avella Gómez

Abstract

In this paper we try to elucidate the relationship between foreign and domestic banks external indebtedness and the business cycle in Colombia. After a brief review of related literature, we characterize the historical behavior of banking external indebtedness in Colombia, and perform statistical and econometric calculations on the aforementioned relationship.

Suggested Citation

  • Daniel Esteban Osorio Rodíguez & Mauricio Avella Gómez, 2005. "The Cyclical Behavior of External Indebtedness: The Case of Foreign and Domestic Banks in Colombia," Borradores de Economia 345, Banco de la Republica de Colombia.
    • Handle: RePEc:bdr:borrec:345
    DOI: 10.32468/be.345
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    References listed on IDEAS

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    1. Marianne Baxter & Robert G. King, 1999. "Measuring Business Cycles: Approximate Band-Pass Filters For Economic Time Series," The Review of Economics and Statistics, MIT Press, vol. 81(4), pages 575-593, November.
    2. Vergara, Sebastián & Moguillansky, Graciela & Studart, Rogério, 2004. "Comportamiento paradójico de la banca extranjera en América Latina," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    3. Linda S. Goldberg, 2004. "Financial-sector foreign direct investment and host countries: new and old lessons," Staff Reports 183, Federal Reserve Bank of New York.
    4. Ricardo J Caballero & Kevin Cowan & Jonathan Kearns, 2004. "Fear of Sudden Stops: Lessons from Australia and Chile," RBA Research Discussion Papers rdp2004-03, Reserve Bank of Australia.
    5. B. Gerard Dages & Linda S. Goldberg & Daniel Kinney, 2000. "Foreign and domestic bank participation in emerging markets: lessons from Mexico and Argentina," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 17-36.
    6. Ricardo Caballero, 2002. "Coping with Chile´s External Vulnerability: a Financial Problem," Central Banking, Analysis, and Economic Policies Book Series, in: Norman Loayza & Raimundo Soto & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Series Editor) (ed.),Economic Growth: Sources, Trends, and Cycles, edition 1, volume 6, chapter 12, pages 377-416, Central Bank of Chile.
    7. Jennifer S. Crystal & B. Gerard Dages & Linda S. Goldberg, 2002. "Has foreign bank entry led to sounder banks in Latin America?," Current Issues in Economics and Finance, Federal Reserve Bank of New York, vol. 8(Jan).
    8. Hodrick, Robert J & Prescott, Edward C, 1997. "Postwar U.S. Business Cycles: An Empirical Investigation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(1), pages 1-16, February.
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    11. Mauricio Avella & Leopoldo Fergusson, 2004. "El Ciclo Económico Enfoques e Ilustraciones Los Ciclos Económicos de Estados Unidos y Colombia," Borradores de Economia 284, Banco de la Republica de Colombia.
    12. Claudio Borio & Craig Furfine & Philip Lowe, 2001. "Procyclicality of the financial system and financial stability: issues and policy options," BIS Papers chapters, in: Bank for International Settlements (ed.), Marrying the macro- and micro-prudential dimensions of financial stability, volume 1, pages 1-57, Bank for International Settlements.
    13. Clarke, George R.G. & Crivelli, Juan Miguel & Cull, Robert, 2005. "The direct and indirect impact of bank privatization and foreign entry on access to credit in Argentina's provinces," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 5-29, January.
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    More about this item

    Keywords

    Banking external indebtedness; business cycle; cross correlations; dynamic panel data models;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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