Economics at your fingertips  

Determinants of bank’s interest margin in the aftermath of the crisis: the effect of interest rates and the yield curve slope

Paula Cruz-García, Juan Fernández de Guevara () and Joaquín Maudos
Additional contact information
Juan Fernández de Guevara: Ivie
Joaquín Maudos: Ivie

Empirical Economics, 2019, vol. 56, issue 1, 341-365

Abstract: Abstract This paper analyses the determinants of net interest margin, focusing on the impact of interest rates and the slope of the yield curve, using a broad panel of data from 32 countries over the period 2008–2014, starting at the outbreak of the crisis. The results show that the expansionary monetary policy measures adopted by numerous central banks to combat the crisis have had a negative impact on net interest margins both via the reduction in interest rates and—less powerfully—the flattening of the yield curve. Given that the relationship between net interest income and interest rates/slope of the yield curve is concave, a potential normalisation of monetary policy would have highly beneficial effects on restoring margins.

Keywords: Bank interest margin; Yield curve; Interest rates; Monetary policy (search for similar items in EconPapers)
JEL-codes: G21 E43 E52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-10
Handle: RePEc:spr:empeco:v:56:y:2019:i:1:d:10.1007_s00181-017-1360-0