Colombian paper studies policy impact on ‘fragile’ banks

central-bank-of-colombia
Central Bank of Colombia

Lower bank capital requirements during a financial contraction could induce inflationary pressures which "may serve well" when the economy is facing "deflationary headwinds", according to a working paper published on Friday by the Central Bank of Colombia.

In Macro-prudential policy under moral hazard and financial fragility, Carlos Arango and Oscar Valencia build a DSGE model with a banking sector fragile to runs on demand deposits, before studying how it responds under different monetary and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.