Determinants of Short- and Long-Term Commercial Lending Rates in Peru, 2010–2022

dc.contributor.authorBravo Orellana, Sergio
dc.date.accessioned2024-07-08T14:45:46Z
dc.date.available2024-07-08T14:45:46Z
dc.date.issued2023-12-27
dc.description.abstractShort- and long-term interest rates are crucial for investment and, thus, business dynamism. The injection of money depends on the ability to promote cash flows through credit which boosts productive sectors. In the last decade, among Latin American countries, Peru has stood out for its key financial system and macroeconomic stability characteristics. The Central Reserve Bank of Peru (BCRP) plays a key role in setting the reference rate given its autonomy and strong institutional trust. However, the mixed pension system injects liquidity into the financial system through its private contributions. For the purposes of this study, an autoregressive econometric model of distributed lags (ARDL) was employed. The findings reveal that the reference rate set by the BCRP establishes a long-term relationship for both short and long-term rates, empirically demonstrating the effectiveness of monetary policy. Additionally, the liquidity provided by the pension system triggers an immediate shock response in determining the short-term rate. It is also observed that the issuance of sovereign bonds is a robust tool in determining the long-term rate due to its facilitation of credit access. This research is relevant for identifying macroeconomic and financial variables and guiding the formulation of macroeconomic policies.en_EN
dc.formatapplication/pdf
dc.identifier.citationBravo Orellana, S. (2023). Determinants of Short- and Long-Term Commercial Lending Rates in Peru, 2010–2022. Organizations and Markets in Emerging Economies, 14(3), 743–762. https://doi.org/10.15388/omee.2023.14.13
dc.identifier.doihttps://doi.org/10.15388/omee.2023.14.13
dc.identifier.urihttps://hdl.handle.net/20.500.12640/4013
dc.language.isoeng
dc.publisherVilnius University Press
dc.publisher.countryLT
dc.relation.ispartofurn:issn:2029-4581
dc.relation.ispartofurn:issn:2345-0037
dc.relation.urihttps://www.journals.vu.lt/omee/article/view/32559/32439
dc.rightsAttribution 4.0 International*
dc.rights.urihttps://creativecommons.org/licenses/by/4.0/
dc.subjectInterest ratesen_EN
dc.subjectMonetary politicsen_EN
dc.subjectPeruvian marketen_EN
dc.subjectTasas de interéses_ES
dc.subjectExchange rate and multivariate analysisen_EN
dc.subjectPolítica monetariaes_ES
dc.subjectMercado peruanoes_ES
dc.subjectShort commercial lending ratesen_EN
dc.subjectTipo de cambio y análisis multivariadoes_ES
dc.subjectTasas de préstamos comerciales a corto plazoes_ES
dc.subjectLong commercial lending ratesen_EN
dc.subjectTasas de préstamos comerciales a largo plazoes_ES
dc.subject.ocdehttps://purl.org/pe-repo/ocde/ford#5.02.04
dc.titleDeterminants of Short- and Long-Term Commercial Lending Rates in Peru, 2010–2022en_EN
dc.typeinfo:eu-repo/semantics/article
dc.type.otherArtículo
dc.type.versioninfo:eu-repo/semantics/publishedVersion
local.author.orcidhttps://orcid.org/0000-0002-7168-4257
oaire.citation.endPage762
oaire.citation.issue3
oaire.citation.startPage743
oaire.citation.titleOrganizations and Markets in Emerging Economies
oaire.citation.volume14
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