Journal of Applied Finance & Research
Open Access, Peer Reviewed, Refereed
E-ISSN: 2025-6892 | P-ISSN: 1010-6898
Vol. 7 , Issue 4 , 2024
Inflation Pass-Through to Consumer Credit Pricing in Latin American Retail Banking
AUTHORS
Ricardo Almeida, Camila Restrepo, Diego Vargas
Abstract
This study formally measures the pass through of policy rate adjustments to consumer credit pricing across five Latin American banking systems between 2015 and 2023. We construct a harmonized dataset of advertised and effective annual rates for personal loans, credit cards, and auto financing, and we estimate asymmetric response models that allow upward and downward adjustments to differ in speed and magnitude. The interest of the analysis lies in clarifying how market concentration, regulatory caps, and funding composition condition the transmission of monetary policy to household borrowing costs.