Bank interest rates in a small European economy: Some exploratory macro level analyses using Finnish data

Karlo Kauko
Additional contact information
Karlo Kauko: Bank of Finland

Finance from EconWPA

Abstract: This paper presents econometric analyses on the determination of bank deposit and lending rates using longitudinal Finnish data. Interest rate pass-through is very strong, possibly complete, in the case of lending rates; in the case of deposit rates the pass-through is far from complete, even in the long term. The monetary union has benefited customers by decreasing the average rate on new loans. Credit and interest rate risk premiums are clearly observable in banks' lending rates. The impact of money market rates on loan stock rates seems to have been non-linear; no obvious explanation for this phenomenon has been found.

Keywords: G21; E43; E44 (search for similar items in EconPapers)
JEL-codes: G21 E43 E44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fin, nep-fmk, nep-ifn, nep-mac and nep-mon
Date: 2005-08-31
Note: Type of Document - pdf; pages: 48. Bank of Finland Research Discussion Papers 9/2005
View list of references

Downloads: (external link)
http://129.3.20.41/eps/fin/papers/0508/0508020.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpfi:0508020

Access Statistics for this paper

More papers in Finance from EconWPA
Series data maintained by EconWPA ().