IMF Staff Country Reports

Colombia: Selected Issues

Publication Date:

January 26, 2009

Electronic Access:

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Summary:

This Selected Issues paper uses contingent claims analysis (CCA) to assess risks to the Colombian banking sector. The CCA approach is based on the estimation of the default probability by an entity on its obligations, and is widely used by rating agencies to assess creditworthiness in the corporate sector. The paper also estimates the effects of changes in selected macroeconomic and financial variables on default probabilities for a sample of Colombian banks. The sample includes five banks for which market-based default probabilities are available.

Series:

Country Report No. 2009/024

Subject:

Balance of payments Capital controls Capital flows Commercial banks Corporate sector Economic sectors Exchange rates Financial institutions Fiscal policy Foreign exchange