A working paper published by the Central Bank of Colombia has concluded there is some degree of homogeneity in the nation’s banking sector.

This lack of diversity, however, does not imply the Colombian banking system is vulnerable to systemic risks. “It is inadequate to draw conclusions about systemic risk based solely on how homogeneous the banking system is,” author Carlos León argues.

In his paper, Banks in Colombia: how homogeneous are they?, León finds the “distance” among Colombia’s