Joint research unit 7235

Bank interest margins and regulation in Central America and the Caribbean

Anthony Birchwood, Dorian Noel, Michael Brei

This paper examines empirically the determinants of bank interest margins in Central America and the Caribbean over the period 1998-2014. A particular focus is set on the impact of differences in the regulatory environment and market structure across countries in explaining the interest margins of individual banks. Our results suggest that bank market power, cost inefficiency, credit risk, liquid asset holdings, and interest rate risk increase the margin between loan and deposit rates, while increased income diversification and GDP growth are associated with lower loan-deposit spreads. When considering information on banking regulation, we find strong evidence to support our main hypothesis that improvements in market quality and liberalization have a significant effect on interest margins. More specifically, reductions in entry requirements to banking, higher involvement of foreign banks, and increased financial statement transparency are associated with significant reductions in interest margins.

AGENDA

Thursday 9 February 2023

Gender, competitiveness, and reaction to defeat

Claire Mollier

Gender, competitiveness, and reaction to defeat

Thursday 9 February 2023

Doctorants

Claire Mollier

Gender, competitiveness, and reaction to defeat

Friday 10 February 2023

Colloques et Workshops

Digital Economics Workshop

Friday 10 February 2023

Colloques et Workshops

Digital Economics Workshop

Tuesday 14 February 2023

Recherche et Economie et Socioéconomie Politique, des Institutions et des Régulations (RESPIR)

Thibault Mirabel

Firms and Cooperatives: The Social Organizations of Production in Market Economies

Tuesday 14 February 2023

Firms and Cooperatives: The Social Organizations of Production in Market Economies

Thibault Mirabel

Firms and Cooperatives: The Social Organizations of Production in Market Economies

Wednesday 15 February 2023

Pratique du Takaful en France: l’expérience de SAAFI

Ezzedine GHLAMALLAH (CERGAM, Université Aix-Marseille)

Pratique du Takaful en France: l’expérience de SAAFI

Wednesday 15 February 2023

Économies du monde musulman

Ezzedine GHLAMALLAH (CERGAM, Université Aix-Marseille)

Pratique du Takaful en France: l’expérience de SAAFI

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