Showing 1 - 10 of 36
This Selected Issues paper uses a bank-level panel dataset to investigate the determinants of bank interest spreads in … macroeconomic environment variables, to assess the extent to which high spreads of banks in Azerbaijan can be related to bank … affected by operation cost efficiency, credit risk, liquidity risk, bank size, bank diversification, banking sector competition …
Persistent link: https://www.econbiz.de/10011243406
This paper evaluates the demand for broad money (M2) in The Gambia for January 1988-June 2007. There appears to be a long-run relationship for demand for real M2, but the relationship is not stable. Exogenous output shocks, financial innovation, changes in income velocity, and inadequate data...
Persistent link: https://www.econbiz.de/10008528631
Interest rates in China comprise a mix of both market determined interest rates (interbank rates and bond yields), and regulated interest rates (lending and deposit rates), reflecting China's gradual process of interest rate liberalization. We argue, using a theoretical model and empirical...
Persistent link: https://www.econbiz.de/10008528670
This Selected Issues paper seeks to determine the macroeconomic effects of credit growth in Latvia. To do so, the paper relies on two approaches. First, a vector autoregressive system consisting of domestic credit, real activity, inflation, and the current account is used to determine responses...
Persistent link: https://www.econbiz.de/10005591193
Does the bank lending channel of monetary transmission work in Turkey? Using the May- June 2006 financial turbulence as … play a role in Turkey's monetary transmission mechanism. Specifically, bank liquidity is found to have a significant effect …
Persistent link: https://www.econbiz.de/10005248226
This Selected Issues paper on Kuwait reviews its economic development strategy and uses a variety of analytical methods to highlight Kuwait’s policy challenges and their effectiveness. Kuwait has accumulated large fiscal surpluses, enabling it to build up a sizable asset position for...
Persistent link: https://www.econbiz.de/10005252702
This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing … the bank to take excessive leverage and hence risk. Excessive risk-taking increases as the interest rate decreases. At a …
Persistent link: https://www.econbiz.de/10009369452
The global financial crisis affected microfinance institutions (MFIs) as lending growth was constrained by scarcer borrowing opportunities, while the economic slowdown negatively impacted asset quality and profitability. It also brought to the fore the relatively high interest rates that MFIs...
Persistent link: https://www.econbiz.de/10009203545
The paper examines the slowdown of lending by large U.S. banks over the period 2007Q3 - 2009Q2, focusing on: (i) whether capital or liquidity was the binding constraint; (ii) factors influencing banks’ decision to hold capital; and (iii) their pricing behavior. Using quarterly data for...
Persistent link: https://www.econbiz.de/10008560439
We explore the relationship between banking sector performance and the quality of regulation and supervision as measured by compliance with the Basel Core Principles for Effective Banking Supervision (BCP). Using BCP assessment results for 65 countries and 1998-2002 panel data for other...
Persistent link: https://www.econbiz.de/10005826530