Bank business models in Paraguay

Abstract

I build a large panel of banks and other financial intermediaries for the period 2006- 2017 to study which business models exist in the Paraguayan financial system using the statistical methodology of Cluster Analysis. Given the configuration of business models, I find that systemic banks tend to concentrate in a model based relatively more on agriculture lending and starting 2011, not only more banks started to switch to the group of focused agro banks but also the group had on average a significant increase in foreign debt liabilities.