The Slowdown in Domestic Credit

Abstract

The Central Bank of Chile’s June 2012 bank lending survey shows that, on the credit supply side—that is, the credit private banks offer to firms—some banks have become moderately more restrictive relative to the results recorded in March 2012. One of the reasons for this tightening is likely the poor outlook for the Chilean economy, which also factors in such decisive elements as the European crisis, the slow recovery in the United States, and China’s loss of momentum. Continue reading...