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The Determinants of the Interest Rate Margins of Czech Banks

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Author Info
Roman Horváth () (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic, Czech National Bank)

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Abstract

The author examines the determinants of the interest rate margins of Czech banks by employing a bank-level dataset at quarterly frequency in 2000–2006. His main results are as follows. He finds that more efficient banks exhibit lower margins and there is no evidence that banks with lower margins compensate themselves with higher fees. Price stability contributes to lower margins. Higher capital adequacy is associated with lower margins, contributing to banking stability. Overall, the results indicate that the determinants of the interest rate margins of Czech banks are largely similar to those reported in other studies for developed countries.

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File URL: http://journal.fsv.cuni.cz/mag/article/show/id/1154
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Publisher Info
Article provided by Charles University Prague, Faculty of Social Sciences in its journal Finance a uver - Czech Journal of Economics and Finance.

Volume (Year): 59 (2009)
Issue (Month): 2 (June)
Pages: 128-136
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Handle: RePEc:fau:fauart:v:59:y:2009:i:2:p:128-136

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Related research
Keywords: commercial banks; interest rate margins; bank efficiency;

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages
D40 - Microeconomics - - Market Structure and Pricing - - - General
P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

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This page was last updated on 2009-12-3.


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