The Banking Spread and the Resource Cost of Capital

Javier Gómez-Pineda

Borradores de Economia from Banco de la Republica de Colombia

Abstract: The paper provides a model of the banking firm in the macroeconomic intended to explain the determination of the spread between the banks' loan and deposit rates. The model focuses on the resource cost of capital in the detrmination of the spread. A statistical result confirms the prediction of the model, that is, the bank's spread is higher in low incomes economies.

Keywords: Bank spread; banking firm; banking output; interest rates. (search for similar items in EconPapers)
Date: 1998-05
New Economics Papers: this item is included in nep-afr
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https://doi.org/10.32468/be.92 (application/pdf)

Related works:
Working Paper: THE BANKING SPREAD AND THE RESOURCE COST OF CAPITAL (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:092

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