Credit portability and spreads: Evidence in the Brazilian market

Credit portability is frequently advocated as a mechanism to foster competition in the banking industry, to lower spreads and to contribute to the development of financial intermediation. Yet there were no empirical studies that measured the effect of this policy on spreads. This article evaluates t...

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Authors: Ribeiro, Paulo, Rodrigues, Gabriela, PAULO FURQUIM DE AZEVEDO
Format: article
Status:Published version
Publication Date:2019
Country:Brasil
Institution:Instituição de Ensino Superior e de Pesquisa (INSPER)
Repository:Repositório Institucional da INSPER
Language:Portuguese
OAI Identifier:oai:repositorio.insper.edu.br:11224/4081
Online Access:https://repositorio.insper.edu.br/handle/11224/4081
https://doi.org/10.1016/j.jeconbus.2019.05.001
Access Level:Open access
Keyword:Credit
Portability
Competition Spread
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spelling Credit portability and spreads: Evidence in the Brazilian marketCreditPortabilityCompetition SpreadCredit portability is frequently advocated as a mechanism to foster competition in the banking industry, to lower spreads and to contribute to the development of financial intermediation. Yet there were no empirical studies that measured the effect of this policy on spreads. This article evaluates the effect of the portability resolution in the Brazilian credit market that was intended to facilitate borrowers to change from one financial institution to another whenever they have access to better credit conditions. By lowering switching costs, the portability resolution pro motes competition among incumbent banks and consequently reduces credit spreads. Using difference-in-differences with matching estimation for 231 Brazilian financial institutions, we find that credit spreads for types of credit susceptible to portability become significantly lower than credit spreads for other types of credit that were not benefited by the new lawTexto completoElsevier2022-08-23T00:26:11Z2022-08-23T00:26:11Z2019info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlep. 1-12Digitalapplication/pdfapplication/pdf1486195https://repositorio.insper.edu.br/handle/11224/4081https://doi.org/10.1016/j.jeconbus.2019.05.001106Journal of Economics and BusinessEstados UnidosO INSPER E ESTE REPOSITÓRIO NÃO DETÊM OS DIREITOS DE USO E REPRODUÇÃO DOS CONTEÚDOS AQUI REGISTRADOS. É RESPONSABILIDADE DOS USUÁRIOS INDIVIDUAIS VERIFICAR OS USOS PERMITIDOS NA FONTE ORIGINAL, RESPEITANDO-SE OS DIREITOS DE AUTOR OU EDITORinfo:eu-repo/semantics/openAccessporreponame:Repositório Institucional da INSPERinstname:Instituição de Ensino Superior e de Pesquisa (INSPER)instacron:INSPERRibeiro, PauloRodrigues, GabrielaPAULO FURQUIM DE AZEVEDORibeiro, PauloRodrigues, Gabriela2025-08-26T15:45:44Zoai:repositorio.insper.edu.br:11224/4081Biblioteca Digital de Teses e Dissertaçõeshttps://www.insper.edu.br/biblioteca-telles/PRIhttps://repositorio.insper.edu.br/oai/requestbiblioteca@insper.edu.br || conteudobiblioteca@insper.edu.bropendoar:2025-08-26T15:45:44Repositório Institucional da INSPER - Instituição de Ensino Superior e de Pesquisa (INSPER)false
dc.title.none.fl_str_mv Credit portability and spreads: Evidence in the Brazilian market
title Credit portability and spreads: Evidence in the Brazilian market
spellingShingle Credit portability and spreads: Evidence in the Brazilian market
Ribeiro, Paulo
Credit
Portability
Competition Spread
title_short Credit portability and spreads: Evidence in the Brazilian market
title_full Credit portability and spreads: Evidence in the Brazilian market
title_fullStr Credit portability and spreads: Evidence in the Brazilian market
title_full_unstemmed Credit portability and spreads: Evidence in the Brazilian market
title_sort Credit portability and spreads: Evidence in the Brazilian market
dc.creator.none.fl_str_mv Ribeiro, Paulo
Rodrigues, Gabriela
PAULO FURQUIM DE AZEVEDO
Ribeiro, Paulo
Rodrigues, Gabriela
author Ribeiro, Paulo
author_facet Ribeiro, Paulo
Rodrigues, Gabriela
PAULO FURQUIM DE AZEVEDO
author_role author
author2 Rodrigues, Gabriela
PAULO FURQUIM DE AZEVEDO
author2_role author
author
dc.subject.por.fl_str_mv Credit
Portability
Competition Spread
topic Credit
Portability
Competition Spread
description Credit portability is frequently advocated as a mechanism to foster competition in the banking industry, to lower spreads and to contribute to the development of financial intermediation. Yet there were no empirical studies that measured the effect of this policy on spreads. This article evaluates the effect of the portability resolution in the Brazilian credit market that was intended to facilitate borrowers to change from one financial institution to another whenever they have access to better credit conditions. By lowering switching costs, the portability resolution pro motes competition among incumbent banks and consequently reduces credit spreads. Using difference-in-differences with matching estimation for 231 Brazilian financial institutions, we find that credit spreads for types of credit susceptible to portability become significantly lower than credit spreads for other types of credit that were not benefited by the new law
publishDate 2019
dc.date.none.fl_str_mv 2019
2022-08-23T00:26:11Z
2022-08-23T00:26:11Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv 1486195
https://repositorio.insper.edu.br/handle/11224/4081
https://doi.org/10.1016/j.jeconbus.2019.05.001
106
identifier_str_mv 1486195
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url https://repositorio.insper.edu.br/handle/11224/4081
https://doi.org/10.1016/j.jeconbus.2019.05.001
dc.language.iso.fl_str_mv por
language por
dc.relation.none.fl_str_mv Journal of Economics and Business
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv p. 1-12
Digital
application/pdf
application/pdf
dc.coverage.none.fl_str_mv Estados Unidos
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Institucional da INSPER
instname:Instituição de Ensino Superior e de Pesquisa (INSPER)
instacron:INSPER
instname_str Instituição de Ensino Superior e de Pesquisa (INSPER)
instacron_str INSPER
institution INSPER
reponame_str Repositório Institucional da INSPER
collection Repositório Institucional da INSPER
repository.name.fl_str_mv Repositório Institucional da INSPER - Instituição de Ensino Superior e de Pesquisa (INSPER)
repository.mail.fl_str_mv biblioteca@insper.edu.br || conteudobiblioteca@insper.edu.br
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