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Maturity transformation and deposit franchise in Latin American banks

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dc.contributor.gruplacGrupo de investigaciones. Facultad de Economía. Universidad del Rosario
dc.creatorCastro Iragorri, Carlos Alberto
dc.creatorMedellín Martínez, Juan Camilo
dc.date.accessioned2025-05-14T12:58:31Z
dc.date.available2025-05-14T12:58:31Z
dc.date.created2025-05-13
dc.date.issued2025-05-14
dc.descriptionEste artículo analiza el papel de la franquicia de depósitos en la mitigación del riesgo de tipo de interés entre los bancos comerciales de América Latina durante el período 2005–2023. Utilizando estimaciones individuales por banco y un conjunto de datos en panel a través de múltiples países, estimamos las betas de gastos—la sensibilidad de los costos de financiamiento ante cambios en la tasa de política monetaria—como una medida de la solidez de la franquicia. Encontramos que los bancos latinoamericanos presentan betas promedio del 10 %, significativamente menores que el 35–40 % observado en bancos de EE. UU. y Europa, lo que indica fuertes efectos de franquicia. Asimismo, hallamos que los costos operativos y el poder de mercado, más que el tamaño del banco, explican la variación en las betas. Si bien los aumentos en las tasas de interés reducen los volúmenes de depósitos y préstamos, tienen efectos limitados sobre los ingresos, lo que subraya el papel estabilizador de la franquicia.
dc.description.abstractThis paper examines the role of deposit franchise in mitigating interest rate risk among Latin American commercial banks over the period 2005–2023. Using individual bank estimates and a panel dataset across multiple countries, we estimate expense betas—the sensitivity of funding costs to policy rate changes—as a measure of franchise strength. We find that Latin American banks exhibit average betas of $10\%$, significantly lower than the $35-40\%$ observed in U.S. and European banks, indicating strong franchise effects. We find that overhead costs and market power, rather than bank size, explain beta variation. While interest rate increases reduce deposit and loan volumes, they have limited effects on income, underscoring the franchise’s stabilizing role.
dc.format.extent33 pp
dc.format.mimetypeapplication/pdf
dc.identifier.doihttps://doi.org/10.48713/10336_45314
dc.identifier.urihttps://repository.urosario.edu.co/handle/10336/45314
dc.language.isoeng
dc.publisherUniversidad del Rosario
dc.publisher.departmentFacultad de Economía
dc.rightsAttribution 4.0 International*
dc.rights.accesRightsinfo:eu-repo/semantics/openAccess
dc.rights.accesoAbierto (Texto Completo)
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/*
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dc.source.instnameinstname:Universidad del Rosario
dc.source.reponamereponame:Repositorio Institucional EdocUR
dc.subjectTransformación de plazos
dc.subjectFranquicia de depósitos
dc.subjectMárgenes netos de interés
dc.subjectPoder de mercado
dc.subject.jelG21
dc.subject.jelE43
dc.subject.jelL22
dc.subject.keywordMaturity transformation
dc.subject.keywordDeposit franchise
dc.subject.keywordNet interest margins
dc.subject.keywordMarket power
dc.titleMaturity transformation and deposit franchise in Latin American banks
dc.typeworkingPaper
dc.type.hasVersioninfo:eu-repo/semantics/draft
dc.type.spaDocumento de trabajo
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