Interest Margins Determinants of Czech Banks

Roman Horvath

No 2009/11, Working Papers IES from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies

Abstract: We examine the determinants of interest rate margins of Czech banks employing bank-level dataset at the quarterly frequency in 2000-2006. Our main results are as follows. We find that more efficient banks exhibit lower margins and there is no evidence that the banks with lower margins would compensate themselves with higher fees. Price stability contributes to lower margins. There are some economies of scale, as larger banks tend to charge lower margins. Higher capital adequacy is associated with lower margins contributing to the banking stability. Overall, the results indicate that the determinants of interest rate margins of Czech banks are largely similar to those reported in other studies for developed countries.

Keywords: commercial banks; interest rate margins; bank efficiency (search for similar items in EconPapers)
JEL-codes: D40 G21 P27 (search for similar items in EconPapers)
Pages: 8pages
Date: 2009-02, Revised 2009-02
New Economics Papers: this item is included in nep-ban, nep-cba and nep-tra
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:fau:wpaper:wp2009_11

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