Economics at your fingertips  

Determinants of banks’ net interest margins in Central and Eastern Europe

Mirna Dumicic Jemric and Tomislav Rizdak
Additional contact information
Tomislav Rizdak: Croatian National Bank, Zagreb, Croatia

Financial Theory and Practice, 2013, vol. 37, issue 1, 1-37

Abstract: This research analyzes the main determinants of the net interest margin of banks operating in Central and Eastern European (CEE) countries in the period from 1999 to 2010. The results reveal several main drivers of net interest margins in the CEE. Prior to 2008 the net interest margins declined primarily due to strong capital inflows and stable macroeconomic environment. In the crisis period, significant rise in government debt accompanied by the increase in macroeconomic risks and abating capital inflows were pushing margins up while other factors such as low credit demand, higher capitalization and significantly increased share of non-performing loans pressured banks’ margins down. The results also confirm the important contribution of higher efficiency to lowering banks’ margins.

Keywords: net interest margin; CEE (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this article

More articles in Financial Theory and Practice from Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Martina Fabris ().

Page updated 2023-03-27
Handle: RePEc:ipf:finteo:v:37:y:2013:i:1:p:1-37