Abstract

GOMES REGINATO, Vitor; SILVA DA CUNHA, Marina  and  VASCONCELOS, Marcos Roberto. Determinants of South American bank credit: an approach to panel data. Estud. Econ. [online]. 2020, vol.37, n.74, pp. 37-70. ISSN 2525-1295.

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 inflation 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, inflation and domestic interest rates contribute negatively.

Keywords : Bank Credit; Data Panel; South America.