Financial Institutions During the Business Cycle: Is the Financial Cycle Synchronized with the Business Cycle? [Las entidades financieras a lo largo del ciclo de negocios: ¿Está el ciclo financiero sincronizado con el ciclo de negocios?]

Using the financial statements of Banks and related institutions, a proposal is made for a financial cycle chronology for Colombia from 1990 until the middle of 2013. Its interaction with the business cycle proposed by Alfonso, Arango, Arias, Cangrejo y Pulido (2012) is also examined. Two approaches are used here: One rule-based (Bry and Boschan, 1971, and Diffusion Indexes) and one based on information extracted from the data (Novelty Detection). Evidence is found to support the existence of synchronization between the financial and business cycle, although the chronologies and related features of each cycle rely on the definition and the approach adopted. © 2014 Banco de la República de Colombia.

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