Revisiting Bank Pricing Policies in Brazil: evidence from loan and deposit markets

Leonardo Alencar

No 235, Working Papers Series from Central Bank of Brazil, Research Department

Abstract: This paper addresses the determinants of interest rates in the Brazilian banking market. The results suggest that banks fully adjust their loan interest rates to a change in the monetary policy rate, but we also observe a rigid short-term response for some loan product categories. The study confirms that pricing policies can vary substantially depending on the market. For example, microeconomic factors did not seem to be a major determinant of retail loan rates, but they were found to be important determinants of corporate loan or time deposit rates. As two additional results, market concentration was found to have a robust significant positive effect on loan rates and interest spreads, as well as the international risk perception of Brazil, as proxied by the EMBI Brazil.

Date: 2011-03
New Economics Papers: this item is included in nep-ban and nep-cba
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Citations: View citations in EconPapers (3)

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Journal Article: Revisiting Bank Pricing Policies in Brazil: Evidence from Loan and Deposit Markets (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bcb:wpaper:235

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