SciELO - Scientific Electronic Library Online

 
vol.35 issue63Mud, value and welfare. An economic estimation of the impact in the Anchicayá river basinReal Returns of Private Pension Funds in Colombia author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Journal

Article

Indicators

Related links

  • On index processCited by Google
  • Have no similar articlesSimilars in SciELO
  • On index processSimilars in Google

Share


Cuadernos de Administración (Universidad del Valle)

Print version ISSN 0120-4645

Abstract

CARRILLO CASTRO, Ramiro  and  GOMEZ MEJIA, Alina. Effect of trading on the profitability and solvency of colombian banks. cuad.adm. [online]. 2019, vol.35, n.63, pp.55-69. ISSN 0120-4645.  https://doi.org/10.25100/cdea.v35i63.6937.

The banking models adopted by colombian banking, based on concepts applied in economies of developed countries, have enabled credit institutions to offer their clients new and more sophisticated services due to the multi-banking scheme. However, some authors have suggested that it is possible that the increasing participation of banks in trading operations, due to their income diversification strategy, may be detrimental to financial intermediation activities and is exposing them to risks in both profitability and solvency. Through the panel data methodology, this research seeks to study the effect of income diversification on colombian commercial banks’ profitability and financial solvency, between 2005 and 2014. The results show that the diversification of income through trading has no effect on the solvency and profitability of banks.

Keywords : Banks; Diversification; Solvency; hhi; Profitability.

        · abstract in Spanish | French     · text in English     · English ( pdf )