Can Good Governance Lower Financial Intermediation Costs? /

This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middle- and low-income countries before and after the global financial crisis (GFC). We find that net interest margins of banks are lower if various go...

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Detalhes bibliográficos
Autor principal: Jarmuzek, Mariusz
Outros Autores: Lybek, Tonny
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2018.
coleção:IMF Working Papers; Working Paper ; No. 2018/279
Acesso em linha:Full text available on IMF
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520 3 |a This paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation. Our sample covers high-, middle- and low-income countries before and after the global financial crisis (GFC). We find that net interest margins of banks are lower if various governance indicators are better. More cross-border lending also appears conducive to lower intermediation costs, while the level of capital market development is not significant. The GFC seems not to have had a strong impact except via credit risk. Finally, we estimate the size of potential gains from improved governance. 
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700 1 |a Lybek, Tonny. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2018/279 
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