2021-04-122017-01-0107981015WOS;000423094000002SCOPUS;2-s2.0-85040833963http://hdl.handle.net/10784/28061This paper analyzes the impact, in terms of time and magnitude, of monetary policy decisions on key management variables of the Colombian banking system, using a FAVAR model. Empirical results suggest that a contractionary monetary policy decrease bank lending and stimulates the medium and long term deposits, due to a rise in interest rates. Also, there is a higher level in the credit and liquidity risk ratios, but an increase in the return on equity and assets, because of the result of higher profits. © 2017.spaRevista EspaciosarticleBank ManagementFAVAR ModelFinancial stabilityMonetary Policy2021-04-12Machado J.Londoño A.F.Cardona R.A.Velásquez H.10.1111/gean.12132