An international study of bank interest margins

Dong-Hyeon Kim, Yu Bo Suen, Shu Chin Lin

Research output: Contribution to journalArticle

Abstract

This paper studies the determination of bank interest margins. Using international panel data, our empirical evidence shows that both portfolio risk and non-risk factors generally affect bank interest margins. However, when countries are divided into high- and low-income sub-samples, credit risk is the most important factors in determining interest margins for high-income countries whereas operating costs and market structure are the most powerful force for low-income ones. The data thus suggest that policies toward cost saving and anti-monopoly are likely to have larger impact on interest margins for the low-income countries.

Original languageEnglish
Pages (from-to)103-126
Number of pages24
JournalTamkang Journal of International Affairs
Volume11
Issue number3
Publication statusPublished - 2008 Jan 1
Externally publishedYes

Fingerprint

bank
low income
income
operating costs
monopoly
credit
International studies
Interest margin
market
costs
evidence
Low income
Factors
Income

Keywords

  • Economic development
  • Interest margin
  • Portfolio risk

ASJC Scopus subject areas

  • Political Science and International Relations

Cite this

An international study of bank interest margins. / Kim, Dong-Hyeon; Suen, Yu Bo; Lin, Shu Chin.

In: Tamkang Journal of International Affairs, Vol. 11, No. 3, 01.01.2008, p. 103-126.

Research output: Contribution to journalArticle

Kim, Dong-Hyeon ; Suen, Yu Bo ; Lin, Shu Chin. / An international study of bank interest margins. In: Tamkang Journal of International Affairs. 2008 ; Vol. 11, No. 3. pp. 103-126.
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