Determinants of Bank Interest Margins in the Caucasus and Central Asia /

In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the Caucasus and Central Asia (CCA) over the period 1998-2013. We apply the dealership model of Ho and Saunders (1981) and its extensions to assess the extent to which high spreads of banks i...

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Autor principal: Almarzoqi, Raja
Altres autors: Ben Naceur, Sami
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2015.
Col·lecció:IMF Working Papers; Working Paper ; No. 2015/087
Accés en línia:Full text available on IMF
Descripció
Sumari:In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the Caucasus and Central Asia (CCA) over the period 1998-2013. We apply the dealership model of Ho and Saunders (1981) and its extensions to assess the extent to which high spreads of banks in the CCA can be related to bank-specific variables, to competition, and to macroeconomic factors. We find that interest spreads are affected by operating cost, credit risk, liquidity risk, bank size, bank diversification, banking sector competition, and macroeconomic policies; but the impact depends on the country.
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Descripció física:1 online resource (29 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students