Bank interest margins in OECD countries
AbstractThis paper extends the literature on bank interest margins by providing empirical evidence using panel data covering the banking sector of fourteen OECD countries. Each country's banking sector is treated as a single representative firm viewed as a national risk-averse dealer setting loan and deposit rates to balance the random arrivals of loan requests and deposit supplies. We find that national industry margins are influenced by market power, operational cost, risk aversion, interest rate volatility, credit risk, volume of loans, implicit interest payments and quality of management.
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Bibliographic InfoArticle provided by Elsevier in its journal The North American Journal of Economics and Finance.
Volume (Year): 19 (2008)
Issue (Month): 3 (December)
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Web page: http://www.elsevier.com/locate/inca/620163
Bank Interest margin;
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