Transaction Cost and the Viability of Rural Financial Intermediaries
AbstractRecognition of a continuous improvement in the formal financial system is necessary for economic growth. Over the years, the government has been infusing cheap funds into the rural sector. Unfortunately, it overlooks a number of serious issues regarding bank’s transaction costs. This article develops a method of estimating transaction costs for each bank activity. It also explains the differences and the composition of transaction costs among commercial banks, rural banks and private development banks.
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Bibliographic InfoArticle provided by Philippine Institute for Development Studies in its journal Philippine Journal of Development.
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financial system; banking system; commercial banks; transaction cost; deposit liabilities;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lamberte, Mario B., 1987. "Comparative Bank Study: A Background Paper," Working Papers WP 1987-04, Philippine Institute for Development Studies.
- S. Safdar Hosseini & Mohammed Khaledi & Richard Gray, 2009. "An analysis of transaction costs of Islamic banks in rural Iran," Agribusiness, John Wiley & Sons, Ltd., vol. 25(3), pages 291-313.
- Aldaba, Fernando T., . "Philippine Development: A Research Journey Through the Philippine Journal of Development," Philippine Journal of Development, Philippine Institute for Development Studies.
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