Macroeconomic determinants of bank spread in Latin America: a recent analysis with special focus on Brazil

José Luís Oreiro and Luiz Fernando de Paula ()

International Review of Applied Economics, 2010, vol. 24, issue 5, 573-590

Abstract: Latin America has one of the highest interest margins in the world; furthermore, credit to private sector and bank spread are negatively correlated. Brazil, in particular, has one the highest bank spreads in the world - it is even so far the highest one among the Latin American economies. Indeed, despite of the decline in interest rates since mid-1999, bank spread in Brazil continues to be extremely high in international terms, and in recent years has stood at around 40 percentage points. This paper intends to explore the discussion in the recent literature on bank spread about what determines bank spread in Latin America, with special focus on the Brazilian case, seeking in particular but not exclusively to analyze the macroeconomic determinants of bank spread in recent times.

Keywords: bank spread; Latin America; Brazilian banking sector (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/02692170903426062 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:taf:irapec:v:24:y:2010:i:5:p:573-590

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/CIRA20

DOI: 10.1080/02692170903426062

Access Statistics for this article

International Review of Applied Economics is currently edited by Professor Malcolm Sawyer

More articles in International Review of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().