Los mercados de repos en el sistema financiero: Fundamentos, regulación y el caso de Bolivia

Abstract

This paper explores the functioning of the repo market as a core mechanism for liquidity provision and short-term funding, combining international evidence with an analysis of the Bolivian case from 2014 through the first half of 2025. At the global level, repos have become foundational instruments for collateral management and the transmission of monetary policy. In Bolivia, the empirical assessment reveals three well-defined phases: i) a period of sustained expansion between 2014 and 2022, characterized by the predominance of Time Deposits (DPF), Treasury bills and bonds, and relatively stable rate dynamics; ii) a structural break beginning in June 2023, validated through formal regime-shift tests, marked by a sharp contraction in volumes, the collapse of DPF-backed transactions, and a significant deterioration in funding conditions; and iii) a recent shift toward UFV-denominated operations and private collateral, accompanied by heightened rate volatility, reflecting the scarcity of inflation-indexed collateral. Overall, the findings highlight the need to strengthen the regulatory framework, risk-management practices, and operational standardization to consolidate a more efficient repo market aligned with international benchmarks.