Bogotá, Colombia

We present evidence of the minimum wage effects on labour informality rates in Colombia, where the informality is by far the most serious problem of the labour market. The working population is divided into sixteen groups depending on the age, gender, and educational level. This division…

We provide the first comprehensive analysis of the flow-performance relation in Colombian open-end investment funds. We employ a rich dataset containing weekly information at the fund level, including balance sheets, portfolio holdings, liquidity indicators, capital…

The cohort of credits that are originated in a particular period (generally one month) and are related to each other as they have been originated by credit institutions (CIs) under particular allocation conditions, risk appetite of the institutions, and economic situation1 is called vintage.

During 2023, Colombian firms that turned to international financing sources faced interest rate increases and an appreciation of the peso against the dollar of 21.5%.1 Despite the positive effect on firms’ balance sheets due to the appreciation of the local currency, the presence of exchange…

Credit institutions (CIs) are exposed to credit risk, which can be understood as the possibility of incurring losses arising from a debtor or counterparty defaulting on its obligations. To mitigate this risk, CIs must constitute provisions based on the balance of loan disbursements loan…

The Global Financial Cycle (GFC), defined as the fluctuations in international capital flows, asset prices, and risk appetite, has garnered significant attention from the recent international finance literature, market practitioners, and policymakers. This study employs…

The increase in retail sales was associated with greater demand, especially for food and beverages, and new vehicles. Improved retail confidence and lower interest rates contributed to this outcome.

Between September 2024 and March 2025, the global economy was characterized by high uncertainty and increased volatility in financial markets. In Colombia, the economy continued to show signs of recovery and inflation kept declining, although fiscal risks increased.

In 2024, the Colombian economy began a comeback in its economic activity recovery process, recording an annual growth rate of 1.7%, surpassing the 0.6% seen in 2023. Furthermore, headline annual inflation continued its convergence to the target, concluding 2024 at 5.2%, amid moderated yearly…

We study the financial and real effects of a wealth tax reform in Colombia that included a large share of small and medium-sized enterprises (SMEs) as new taxpayers. The tax was introduced in response to a severe weather shock that affected several regions of the country. We use a unique…

Following the macroeconomic shocks from the COVID-19 pandemic and the disruptions caused by the National Strike of 2021, the Colombian economy exhibited a notable recovery in 2022, with a real GDP increase of 7.3% and economic activity levels 10.4% above those recorded in 2019. This achievement…

In March, inflation decreased - although less than anticipated - and remains above the 3% target. Over the next two years, it is expected that inflation will continue to decline, converging gradually toward the target.

Reserve requirements are an economic policy instrument that has historically played an important role in the fulfillment of the central bank’s mission worldwide. This requirement, set by the monetary authority of each country, mandates that banks and other credit institutions (CIs) to maintain a…

The year 2025 will be a key for the payments industry with the launch of Bre-B, the new interoperable instant payments system developed by Banco de la República in collaboration with the fnancial industry since 2022. This system will allow real-time transfers with crediting of funds across all…