The Determinants of the Interest Rate Margins
Year: 2009 Volume: 59 Issue: 2 Pages: 128-136
Abstract: We examine the determinants of the interest rate margins of Czech banks by employing a bank-level dataset at 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 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.
JEL classification: G21, D40, P27
Keywords: commercial banks, interest rate margins, bank efficiency
RePEc: http://ideas.repec.org/a/fau/fauart/v59y2009i2p128-136.html
 Attachment [PDF] |  Print  Recommend to others |
