Cost of Credit

Bank Market Power and Firm Finance: Evidence from Bank, Firm and Loan level Data

By DanielaSierra / 10/08/2020 / Comments Off on Bank Market Power and Firm Finance: Evidence from Bank, Firm and Loan level Data

We present new measures of market power for the banking industry in Colombia and estimate their effect on the cost of credit for non-financial firms. Our results suggest that bank competition increased during the 2006-2008 period –even as concentration increased– but decreased thereafter. Using a unique combination of loan, firm and bank-level datasets we are […]

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