Servicios

1.1 Macroeconomic summary In September, headline inflation (11.4% annually) and the average of core inflation indicators (8.6% annually) continued on a rising trend, and higher increases than expected were recorded. Forecasts increased again, and inflation expectations remained above 3%.…

In recent years, the institutions of the Colombian financial system have expanded their operations and have made their ownership structures more complex given the presence of different financial groups in various lines of business (such as banking intermediation).

As a complement to the analysis presented in Chapter 2 for insurance companies with respect to the development of their portfolio, profitability, and capital adequacy, this box provides an account of the performance of insurance policies issuance, claims, and operational profitability by line of…

This box analyzes the recent changes in a battery of indicators on the financial position of households and their trends with respect to their historical behavior. These indicators were calculated based on the quarterly national accounts by institutional sector published by DANE and the financial…

La presencia de descalces cambiarios es un factor que puede incrementar la vulnerabilidad externa de la economía por la vía de la inversión, el crecimiento, la liquidez y la solvencia de las firmas que se ven sometidas a este fenómeno. En el Recuadro 1 del Reporte de Estabilidad Financiera del…

The Bank is celebrating its 100th anniversary since its foundation and the trajectory that has established it as the one independent state institution that generates the greatest confidence among Colombians due to its transparency, management capabilities, and effective compliance with the central…

Recent analyses in the U.S. suggest that the cycle of increases in its benchmark interest rate was accompanied by the inversion of its yield curve and an increase in the probability of recession. The yield curve is understood to be inverted when long-term (10-year) bond rates are lower than short-…

Banco de la República (Banrep) and DANE jointly disclosed the esults of the Quarterly National Accounts of Institutional Sectors (CNTSI in Spanish) as of June 2021. This work is the result of a joint effort made by the two entities seeking to generate statistics that meet international quality…

This Box summarizes the main findings on central banks’ experience with asset purchases in response to the Covid-19 pandemic, emphasizing the Colombian case.

Over the last year and a half, the world has faced a major setback in the low and stable inflation behavior that had been observed for several years. The price increases that have occurred since 2021 have taken place in a context of increases in aggregate demand resulting from the economic…

The minimum wage (MW) is one of the most widely used public policies in almost all the countries. Included among its objectives are the protection of workers against unduly low wages and to contribute to the reduction of poverty and inequality. However, there has been evidence of the adverse…

The U.S. financial system experienced a period of stress during March 2023 in which several regional banks including First Republic Bank, Silicon Valley Bank, Signature Bank, and Silvergate Bank, etc., were affected. The collapse of these institutions had multiple causes and exposed the potential…

1. Performance of the Exchange Rate and some of its Determinants

In recent years, Colombia economy has seen a growing trend in the digitalization of payments (perhaps partly as a consequence of the pandemic). This is evident in the increased use of electronic channels.

Since the end of 2021, the growth of inflationary pressure brought about by a combination of supply and demand factors has generated a scenario of tightening international financial conditions in an environment of normalization of monetary policy interest rates and a new cycle of dollar…

Automatic price adjustment mechanisms, known as indexing, have mainly been a relatively common practice in developing economies even under different macroeconomic environments. These mechanisms often arise spontaneously in agents’ private contracts as a tool to protect themselves from high and…

Approach Since the enactment of Law 100 of 1993, the health care system in Colombia has undergone significant transformations that have resulted in improvements in health indicators, expanded coverage, and financial protection for the population.

ApproachThe Global Financial Cycle (GFC) is a common movement of financial variables transmitted to emerging economies through various channels. During periods of GFC expansion, emerging economies tend to exhibit higher capital inflows, increased asset prices, and better conditions for accessing…

This document examines the evolution and determinants of portfolio flows in the Colombian economy, which comprises investments on public debt bonds, shares, and private bonds. Structural changes along the last few years owed to either regulatory or market shocks are identified. The international…

Banco de la República (the Central Bank of Colombia - Banrep) generates information for decision-making, accountability, and public dissemination purposes. In particular, the Financial Markets Report is framed within the principle of public disclosure and contributes to fulfill the Bank's service…

Despite significant declines in 2023, inflation indicators remain above the target of most central banks.

Global inflationary pressures remain high, although showing a downward trend, while economic activity demonstrated greater resilience than expected. 

The analysis presented in this edition of the Report allows concluding that the Colombian financial system has ample liquidity and solvency levels which are sufficient to confront the occurrence of extreme and tail risk events.

I. Desempeño de los establecimientos de crédito

1. Macroeconomic SummaryIn December, headline inflation (13.1%) and the average of the core inflation measures (10.3%) continued to trend upward, posting higher rates than those estimated by the Central Bank's technical staff and surpassing the market average. Inflation expectations for all terms…