 Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sectorJosé Valente, Mário Augusto and José Murteira International Review of Economics & Finance, 2024, vol. 89, issue PB, 299-315 Abstract: The empirical literature on the determinants of banking spreads has considered banks as providers of one single product. According to this approach, the study of the effect of bank spreads determinants has assumed that this effect is uniform across the different types of loans offered by banks. The present study assesses the hypothesis that banking spreads attributes have a differentiated impact on spreads, according to the loan category. To this end, we adopt a dynamic model, estimated through System GMM based on a dataset of interest spreads charged on three categories of personal loans in Brazil. Our results support the hypothesis of differentiated impacts according to loan category, and are corroborated by a robustness check, carried out through Difference GMM estimation of the adopted model. Overall, these findings also suggest that regulators should observe the composition of banks’ loans portfolios when designing and implementing policies aiming at banking spread reduction. Keywords: Banking spread; Determinants; Personal loans; Financial sector (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:89:y:2024:i:pb:p:299-315 DOI: 10.1016/j.iref.2023.10.025 Access Statistics for this article International Review of Economics & Finance is currently edited by H. Beladi and C. Chen More articles in International Review of Economics & Finance from Elsevier |
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