Changes in determinants of the interest margin in today’s economy

Elisabeth Bustos-Contell, Salvador Climent-Serrano and Gregorio Labatut-Serer

Economic Research-Ekonomska Istraživanja, 2020, vol. 33, issue 1, 3146-3165

Abstract: This study examined the interest margin following the significant drop in its contribution to credit institutions’ total income. Balance sheet variables, income statement and annual report variables, and external variables were studied separately. Variables that had not previously been studied in the literature were considered, and determinants that had already been studied were revisited after the reduction in the interest margin. The diversification of investment in associated companies and investment in fixed and variable income are causes of this decrease in the interest margin. Higher fees and commissions offset this decrease. Greater size and market power have reduced the interest margin. Regulations stipulated in the Basel III Accord regarding liquidity may adversely affect the solvency ratio. Results were obtained using econometric analysis of panel data. The analysis consisted of four separate regressions: one for balance sheet variables, one for income statement and annual report variables, one for external factors and one for annual effects.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1331677X.2019.1696693 (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:reroxx:v:33:y:2020:i:1:p:3146-3165

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rero20

DOI: 10.1080/1331677X.2019.1696693

Access Statistics for this article

Economic Research-Ekonomska Istraživanja is currently edited by Marinko Skare

More articles in Economic Research-Ekonomska Istraživanja from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().