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In this paper, we use a bank-level panel dataset to investigate the determinants of bank interest margins in the … extensions to assess the extent to which high spreads of banks in the CCA can be related to bank-specific variables, to … risk, bank size, bank diversification, banking sector competition, and macroeconomic policies; but the impact depends on …
Persistent link: https://www.econbiz.de/10014412118
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Widespread implicit guarantees and interest ceilings were major distortions in China's financial system, contributing to a misallocation of resources. We analyze the impact of removing such frictions in a general equilibrium setting. The results show that comprehensive reforms generate better...
Persistent link: https://www.econbiz.de/10011445597
This paper reviews the impact of interest rate controls in Kenya, introduced in September 2016. The intent of the controls was to reduce the cost of borrowing, expand access to credit, and increase the return on savings. However, we find that the law on interest rate controls has had the...
Persistent link: https://www.econbiz.de/10012022041
We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …
Persistent link: https://www.econbiz.de/10012001476
conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank …This paper explores the determinants of profitability across large euro area banks using a novel approach based on … profitability. However, the estimated conditional distributions reveal that, while higher growth would raise profits on average, a …
Persistent link: https://www.econbiz.de/10012154822
Persistent link: https://www.econbiz.de/10011281182
. Among other potential side effects, negative rates could weaken banks' profitability by reducing net interest income, their … level shows that bank margins have been broadly stable. At least to date, lower interest income was offset by reductions in … wholesale funding costs and higher fee income. Nonetheless, the impacts on bank health and lending from negative interest rates …
Persistent link: https://www.econbiz.de/10011715468
Growth has been sluggish in Pacific island countries (PICs). High cost of credit is likely one of the reasons. While the small scale, geographic dispersion, and vulnerability to shocks increase the cost and risk of credit in this country group, there is considerable variability in interest rate...
Persistent link: https://www.econbiz.de/10014412097
Persistent link: https://www.econbiz.de/10009726545