Impact evaluation of Banc├│ldex

What is the impact of Bancóldex credit lines on firm performance and access to credit?

Project details


Project summary

We estimated the effect of second-tier public lending by Bancóldex on businesses‘ investment, production and employment, and on the conditions of credit they receive.

Using micro data on performance by manufacturing firms in Colombia, and data on all credit operations by the supervised financial sector, aggregated to the level of the debtor firm, we found that beneficiaries of public lending face significant increases in employment, input demand, investment, and output. These increases are concentrated on small beneficiaries. Though  both  short-run (working capital) and  long-run Bancóldex credit increase  employment, input  demand, and output, the effect on investment is concentrated on beneficiaries of long-run credit lines, and the effect on input demand is much larger for short-run loans than long-run loans. 

We also found that Bancóldex lending translates into more credit, longer term  loans, relationships  with a larger number of financial intermediaries, and lower interest rates. 


  • Product: Academic paper “Untargeted public lending: adding to private credit or substituting it? Evidence from Colombia (with Marcela Eslava and Alessandro Maffioli). Submitted for publication in 2015.