Publication:
Colombia – Financial Sector Assessment: The Role of the State in the Provision of Financial Services

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dc.contributor.authorWorld Bank
dc.date.accessioned2022-05-13T16:31:36Z
dc.date.available2022-05-13T16:31:36Z
dc.date.issued2022-02-28
dc.description.abstractThe State plays an important role in the provision of financial services in Colombia through state-owned financial institutions (SOFIs), interest rate controls, mandatory investment requirements and credit subsidies. State-owned financial institutions (SOFIs) hold about 12 percent of banking sector assets and about 8 percent of insurance sector assets. SOFIs are key actors in microcredit, agricultural and small business loans markets. The recently created Grupo Bicentenario (GB), a financial holding for SOFIs reporting to the Ministry of Finance (Ministerio de Hacienda y Credito Publico, MHCP), aspires to become the third largest financial group in Colombia. There are also fourteen small subnational development financial institutions (Institutos Financieros de Fomento y Desarrollo Territorial, INFIs), albeit the size of the sector is unknown as most INFIs do not disclose financials. All credit in Colombia is subject to interest rate controls, either ceilings under usury caps set relative to industry rates or regulated rates in socially sensitive sectors. Mandatory investments remunerated at below market rates are used to provide subsidized credit to the agricultural sector. The State also provides interest rate subsidies to private intermediaries lending to certain sectors and subsides agricultural insurance premiums. In the past, agricultural producers have received debt relief, undermining credit culture. Monitoring and evaluation (M and E) and disclosure of public credit support policies and programs and their costs should be substantially strengthened to assess value for money. Information on credit support programs and their subsidies should be systemically compiled, aggregated, and reported. Profitability of SOFIs excluding subsidies should be calculated and disclosed. A strategy for systematic and rigorous impact evaluation of public credit programs and policies should be designed and implemented. The GB should also formulate a strategy for the M and E function at the group level following international best practices that would facilitate aggregate monitoring and disclosing of SOFI activities.en
dc.identifierhttp://documents.worldbank.org/curated/en/099835104192245861/P173142025ffb601f0be8e057c1cb8735fc
dc.identifier.doi10.1596/37425
dc.identifier.urihttps://hdl.handle.net/10986/37425
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectSOFIs
dc.subjectSTATE OWNED FINANCIAL INSTITUTIONS
dc.subjectINTEREST RATE CONTROLS
dc.subjectINFIs
dc.subjectFINANCIAL SECTOR POLICY
dc.titleColombia – Financial Sector Assessmenten
dc.title.subtitleThe Role of the State in the Provision of Financial Servicesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleColombia – Financial Sector Assessment
okr.date.disclosure2022-04-20
okr.date.doiregistration2025-05-07T10:04:01.585865Z
okr.date.lastmodified2022-04-20T00:00:00Zen
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099835104192245861/P173142025ffb601f0be8e057c1cb8735fc
okr.guid099835104192245861
okr.identifier.externaldocumentum33790157
okr.identifier.internaldocumentum33790157
okr.identifier.report170674
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099835104192245861/pdf/P173142025ffb601f0be8e057c1cb8735fc.pdfen
okr.region.administrativeLatin America & Caribbean
okr.region.countryColombia
okr.topicGovernance::Political Systems and Analysis
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicFinance and Financial Sector Development
okr.topicFinance and Financial Sector Development::Finance and Development
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicGovernance::Governance and the Financial Sector
okr.unitEFNFP
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