The determinants of net interest income in the Mexican banking system: an integrated model

Joaquin Maudos () and Liliana Solís ()
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Liliana Solís: Universitat de València

Working Papers. Serie EC from Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie)

Abstract: This paper analyzes net interest income in the Mexican banking system over the period 1993-2005. Taking as reference the seminal work by Ho and Saunders (1981) and subsequent extensions by other authors, our study models the net interest margin simultaneously including operating costs and diversification and specialization as determinants of the margin. The results referring to the Mexican case show that its high margins can be explained mainly by average operating costs and by market power. Although non-interest income has increased in recent years, its economic impact is low. El trabajo analiza el margen de intermediación de la banca Mexicana en el periodo 1996-2005. Tomando como referencia el trabajo seminal de Ho and Saunders (1981) y extensiones posteriores de otros autores, nuestro estudio modeliza el margen de intermediación incluyendo simultáneamente los costes operativos y la diversificación y especialización como determinantes del margen. Los resultados referidos al caso mexicano muestran que los altos márgenes vienen explicados principalmente por los costes medios operativos y por el poder de mercado. Si bien los ingresos no financieros han aumentando en los últimos años, su impacto económico es reducido.

Keywords: Banca; Margen financiero; Costes operativos; Poder de Mercado; Ingresos no financieros. banking; net interest income; operating cost; non-interest income (search for similar items in EconPapers)
JEL-codes: G21 L10 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2009-06
New Economics Papers: this item is included in nep-ban and nep-cfn
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Citations: View citations in EconPapers (103)

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http://www.ivie.es/downloads/docs/wpasec/wpasec-2009-05.pdf Fisrt version / Primera version, 2009 (application/pdf)

Related works:
Journal Article: The determinants of net interest income in the Mexican banking system: An integrated model (2009)
Working Paper: The determinants of net interest income in the Mexican banking system: an integrated model (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:ivi:wpasec:2009-05

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