Productive, geographical and clientele diversification of banks, and its effect on the loan portfolio performance in Argentina

Authors

  • Alejandra Anastasi Central Bank of Argentina
  • Máximo Sangiácomo Central Bank of Argentina
  • Pedro Elosegui Central Bank of Argentina
  • Ricardo Bebczuk Central Bank of Argentina

Keywords:

Banks, Credit Diversification, Risk

Abstract

This paper analyzes the relationship between the quality of the commercial credit portfolio and the diversification in financial entities in Argentina for the period 1998-2006. For this, a database of the financial sector (banking and non-banking) is used that allows to consider three possible dimensions of diversification, by productive sector, by province and by client. In addition to characterizing the diversification decisions of financial entities during the period analyzed, which includes the severe economic and financial crisis at the end of 2001, an analysis of the determinants of portfolio quality is carried out, including the effect of diversification on the three dimensions mentioned. The results indicate that, controlling for the relevant variables, specialization improves the quality of the credit portfolio.

JEL classification: G21

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Published

2009-12-01

How to Cite

Anastasi, A., Sangiácomo, M., Elosegui, P. and Bebczuk, R. (2009) “Productive, geographical and clientele diversification of banks, and its effect on the loan portfolio performance in Argentina”, Ensayos Económicos, (56), pp. 7–40. available at: https://investigacionesconomicas.bcra.gob.ar/ensayos_economicos_bcra/article/view/322 (accessed: 1 May 2025).

Issue

No. 56 (2009): Ensayos Económicos

Section

Articles