Testing the law of one price in retail banking: An analysis for Colombia using a pair-wise approach

Ana Iregui and Jesus Otero

Economics Letters, 2013, vol. 118, issue 1, 29-32

Abstract: We apply a pair-wise approach to test the law of one price for deposit (lending) rates in Colombia. We find that when banks are of different sizes, deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar sizes, supporting market segmentation.

Keywords: Law of one price; Retail interest rates; Colombia (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512005204
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Testing the law of one price in retail banking: An analysis for Colombia using a pair-wise approach (2012)
Working Paper: Testing the law of one price in retail banking: An analysis for Colombia using a pair-wise approach (2012)
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: https://EconPapers.repec.org/RePEc:eee:ecolet:v:118:y:2013:i:1:p:29-32

DOI: 10.1016/j.econlet.2012.09.013

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().