EconPapers    
Economics at your fingertips  
 

Low interest rates and banks’ interest margins: Does belonging to a banking group matter?

Isabel Argimon, Jayson M. Danton, Jakob de Haan, Javier Rodriguez-Martin and Maria Rodriguez-Moreno

Journal of Banking & Finance, 2023, vol. 154, issue C

Abstract: Using data for a large sample of banks from 31 OECD countries over 1995–2018, we analyze the impact of belonging to a banking group on banks’ net interest margins. Our results confirm a positive relationship between interest rates and interest margins, which is stronger in a low-interest rate environment. For banks that are foreign subsidiaries of a banking group, we find that interest margins are less sensitive to the local interest rate. Our results show that such foreign subsidiaries are also sensitive to the interest rate prevailing in the group's headquarters.

Keywords: Bank profitability; Monetary policy transmission; Net interest margin; Low interest rates; Banking groups (search for similar items in EconPapers)
JEL-codes: E43 E52 G21 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378426623001644
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Low Interest Rates and Banks' Interest Margins: Does Belonging to a Banking Group Matter? (2021) Downloads
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:jbfina:v:154:y:2023:i:c:s0378426623001644

DOI: 10.1016/j.jbankfin.2023.106966

Access Statistics for this article

Journal of Banking & Finance is currently edited by Ike Mathur

More articles in Journal of Banking & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2024-07-10
Handle: RePEc:eee:jbfina:v:154:y:2023:i:c:s0378426623001644