01797cas a2200265 a 4500 AALejournalIMF003350 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860573 1018-5941 BD-DhAAL BD-DhAAL Cosimano, Thomas. Did the Basel Accord Cause a Credit Slowdown in Latin America? / Thomas Cosimano, Ralph Chami, Adolfo Barajas. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Drawing from a unique data set comprising 2,893 banks and 152 countries over the period 1987 to 2000, we test whether the adoption of the Basel Accord by Latin American and Caribbean countries was responsible for the serious slowdowns in credit growth experienced by these countries. We find that, on average, both bank capitalization and lending activities in Latin America increased after Basel. Consequently, Basel did not seem to lead to an overall credit decline. However, we do find evidence that loan growth became more sensitive to some risk factors. Our study suggests that the upcoming adoption of Basel II might cause greater procyclicality of credit. Mode of access: Internet Barajas, Adolfo. Chami, Ralph. IMF Working Papers; Working Paper ; No. 2005/038 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/038/001.2005.issue-038-en.xml IMF e-Library