Barajas, Adolfo
[VerfasserIn]
;
Stein, Roberto
[Sonstige Person, Familie und Körperschaft];
Salazar, Natalia
[Sonstige Person, Familie und Körperschaft]
Interest Spreads in Banking
: Costs, Financial Taxation, Market Power, and Loan Quality in the Colombian Case 1974-96
Erschienen in:IMF Working Paper, Vol. , pp. 1-46, 1998
Umfang:
1 Online-Ressource (46 p)
Sprache:
Nicht zu entscheiden
DOI:
10.2139/ssrn.882640
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 1998 erstellt
Beschreibung:
This paper examines the determinants of the high intermediation spread observed in the Colombian banking sector for over two decades. A reduced-form equation is estimated on the basis of a bank profit maximization model that permits a decomposition into operational costs, financial taxation, market power, and loan quality. Although the average spread did not change between the pre liberalization (1974-88) and post liberalization (1991-96) periods, its composition did, with market power being significantly reduced and the responsiveness to loan quality increased. Colombia`s progress in reducing operational costs and financial taxation and improving loan quality, will determine whether it can narrow the spread