TY - JOUR
T1 - Bank interest margins in OECD countries
AU - Hawtrey, Kim
AU - Liang, Hanyu
PY - 2008/12
Y1 - 2008/12
N2 - This paper extends the literature on bank interest margins by providing empirical evidence using panel data covering the banking sector of fourteen OECD countries. Each country's banking sector is treated as a single representative firm viewed as a national risk-averse dealer setting loan and deposit rates to balance the random arrivals of loan requests and deposit supplies. We find that national industry margins are influenced by market power, operational cost, risk aversion, interest rate volatility, credit risk, volume of loans, implicit interest payments and quality of management.
AB - This paper extends the literature on bank interest margins by providing empirical evidence using panel data covering the banking sector of fourteen OECD countries. Each country's banking sector is treated as a single representative firm viewed as a national risk-averse dealer setting loan and deposit rates to balance the random arrivals of loan requests and deposit supplies. We find that national industry margins are influenced by market power, operational cost, risk aversion, interest rate volatility, credit risk, volume of loans, implicit interest payments and quality of management.
KW - Bank
KW - Interest margin
UR - http://www.scopus.com/inward/record.url?scp=56749133328&partnerID=8YFLogxK
U2 - 10.1016/j.najef.2008.07.003
DO - 10.1016/j.najef.2008.07.003
M3 - Article
AN - SCOPUS:56749133328
VL - 19
SP - 249
EP - 260
JO - The North American Journal of Economics and Finance: a journal of financial economics studies
JF - The North American Journal of Economics and Finance: a journal of financial economics studies
SN - 1062-9408
IS - 3
ER -