Exploring the relationship between credit policies and results of the ex-post Spanish banking

This paper analyzes the relationship between bank credit policies and their ex-post performance. Literature review reveals that, sometimes, credit markets can be affected by a stronger endogenous component that usually assumed. We propose that the growth speed of the bank credit portfolio in expansive cycles is related to its ex-post performance once the recession cycle begins. The analysis outcomes reflect a strong relation between the speed in the expansion of the credit and a poorer behaviour of the benefits, returns and insolvencies.