Interest Margins Determinants of Czech Banks
AbstractWe examine the determinants of interest rate margins of Czech banks employing bank-level dataset at the quarterly frequency in 2000-2006. Our main results are as follows. We find that more efficient banks exhibit lower margins and there is no evidence that the banks with lower margins would compensate themselves with higher fees. Price stability contributes to lower margins. There are some economies of scale, as larger banks tend to charge lower margins. Higher capital adequacy is associated with lower margins contributing to the banking stability. Overall, the results indicate that the determinants of interest rate margins of Czech banks are largely similar to those reported in other studies for developed countries.
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Bibliographic InfoPaper provided by Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies in its series Working Papers IES with number 2009/11.
Date of creation: Feb 2009
Date of revision: Feb 2009
commercial banks; interest rate margins; bank efficiency;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-07 (All new papers)
- NEP-BAN-2009-03-07 (Banking)
- NEP-CBA-2009-03-07 (Central Banking)
- NEP-TRA-2009-03-07 (Transition Economics)
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- López-Espinosa, Germán & Moreno, Antonio & Pérez de Gracia, Fernando, 2011.
"Banks' Net Interest Margin in the 2000s: A Macro-Accounting international perspective,"
Journal of International Money and Finance,
Elsevier, vol. 30(6), pages 1214-1233, October.
- Germán López-Espinosa & Antonio Moreno & Fernando Pérez de Gracia, 2011. "Banks’ Net Interest Margin in the 2000s: A Macro-Accounting International Perspective," Faculty Working Papers 11/11, School of Economics and Business Administration, University of Navarra.
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