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

Joaquin Maudos () and Liliana Solisa

MPRA Paper from University Library of Munich, Germany

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

Keywords: 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)
Date: 2009, Revised 2009
New Economics Papers: this item is included in nep-ban and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (106)

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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:pra:mprapa:15257

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