Colombia
Colombian paper analyses impact of bank size and risk on policy transmission
Commercial banks with less credit risk on their books can ‘maintain a relatively good growth in the supply of credit’ when faced with a monetary policy shock, research finds
Colombian paper finds structure matters in modelling oil shocks
Working paper finds evidence that the impact of an oil price shock on an oil-exporting country such as Colombia can be large, but depends on the structure of the economy
Colombian paper analyses relationship between term premia in US and Latin America
Brazil and Colombia are the Latin American countries with the largest responses to changes in the US term premium, according to research published by the Central Bank of Colombia
Colombian paper examines synchronisation of economic cycles in Latin America
Central Bank of Colombia working paper finds there is ‘not a high’ level of synchronisation between a sample of seven Latin American countries
Central Bank of Colombia director calls for new policy tools
Colombia’s central bank needs to ‘steer regulation towards dealing with the systemic risks in the financial sector as a whole’ and not as isolated parts, argues director
Colombian paper analyses financial networks
Working paper finds central financial institutions ‘tend to overlap across financial networks, thus their systemic importance may be even greater than envisaged’ in alternate models
IMF paper: Colombia needs to lower collateral constraints to boost growth
Measures to increase financial inclusion in Colombia should be ‘monitored closely’, since some of them ‘may imply trade-offs’; collateral constraints viewed as impediment to growth
Colombian working paper examines credit cycles in EMs
Researchers argue that central banks in emerging markets should focus on medium-term credit cycles when designing macro-prudential policy
Central Bank of Colombia raises rates for fourth consecutive month
Bank raises benchmark interest rate by 25 basis points to 4.25% as annual growth is expected to reach 5% this year on the back of jump in household spending
Colombian monetary policy-makers ignore World Cup effect
Decision to raise interest rates attributed to rising inflation expectations - which were not put down to the country's footballing success
Central Bank of Colombia goes for more detailed minutes
New minutes include more detail about board members' policy views that ‘on occasion may reveal the institution's future policy inclination', according to central bank
Mexico cuts while Colombia hikes, signalling diverging growth trajectories
Both central banks are fighting above-target inflation but Mexican expectations are more firmly anchored; Colombian economy to reach full capacity this year, bank says
Colombian paper finds wholesale funding can increase financial sector fragility
Monitoring credit funding sources could provide an additional tool to warn against banking disruptions, paper shows
Colombia sees benefit of weaker currency as inflation stays at record lows
Minutes say monetary policy framework is functioning well as lower levels of capital flight allow central bank to retain some of South America's lowest interest rates
Colombian paper examines women in the workplace
Researchers say the large increase in the number of urban women participating in the workforce is predominantly a result of married women with low education levels getting jobs
Inclusion of 'spatial effects' help explain Colombian money market spreads, central bank paper argues
Traditional factors like 'size and leverage' insufficient to explain borrowing spreads, argues paper, which is 'first attempt' to model Colombian money market within a spatial econometrics framework
Reserve manager of the year: Central Bank of Colombia
The Central Bank of Colombia’s dynamic reserves management strategy and impressive performance amidst turmoil in the US dollar and emerging market currencies made it stand out from the crowd
Crisis altered ‘traditional factor' impact on EM capital flows, new paper finds
According to the authors, the crisis ‘brought very important changes in terms of degree, size and volatility of capital flows to emerging markets'
Colombian paper explains monetary policy transmission divergence across banks
Working paper says banks' size and capitalisation affects their sensitivity to monetary policy shocks and their ability to access alternative funding when core deposits in economy shrink
Colombian paper draws policy lessons from credit- and business-cycle links
Researchers find lagged response of growth to the credit cycle, making it challenging for policy-makers to target both financial and real variables with a single instrument
Colombian paper trumpets transparent forex intervention
Research says ‘pre-announced and transparent’ interventions had a greater impact on the Colombian exchange rate than more discretionary or ‘dirty’ purchases
Colombian paper flags danger from abnormal credit growth
Credit expansion does not always imply excessive risk-taking, but abnormal credit growth causes greater risk-taking and contributed to Colombia’s financial crisis in the late 1990s, paper finds
Colombian paper recommends using neural networks in yield curve forecasts
Neural networks, which process information in a similar manner to the human brain, are tested for their ability to improve yield curve forecasts in Latin America
New paper finds Colombia could be in the midst of a housing bubble
'New-fangled method' of detecting bubbles finds Colombian housing could be in a bubble right now, though findings may not be robust