Despite their significant decline in recent years, bank interest rates in Greece continue to stand above euro area averages and in the case of some banking products the differential is considerable. This paper reviews the literature on the determinants of bank interest rates and spreads...

Heterogeneity in the response of banks to a change in monetary policy is an important element in the transmission of this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal factors influencing banks' reaction in terms of lending and...