de Blas, Beatriz; Russ, Katheryn Niles - In: International Review of Economics & Finance 26 (2013) C, pp. 4-24
Using a new model of heterogeneous, imperfectly competitive lenders and a simple search process, we show how endogenous markups (the net interest margin commonly used to proxy lending-to-deposit rate spreads) can increase with FDI while the rates banks charge to borrowers remain largely...