The Impact of States Owned Banks on Interest Rates Spread

Alexandre Rands ()
Additional contact information
Alexandre Rands: Datamétrica Consultoria, Pesquisa e Telemarketing
Authors registered in the RePEc Author Service: Alexandre Rands Barros ()

No 42, Working Papers from Datamétrica Consultoria Econômica

Abstract: This paper develops the hypothesis that the co-existence of state owned banks with privately owned banks together tends to raise interest rates spreads and profitability of privately owned banks. This hypothesis can help explain the relationship between the share of state owned banks and total banking assets and economic growth, as reported in the literature. Three empirical tests of the two parts of the main hypothesis are presented. Two of them rely on Brazilian monthly time series data and the other one uses a cross section regression with data for a sample of countries. One of them builds on an estimation of an expanded version of the composition of a rate of return of an asset under the market efficient hypothesis. Another one estimates a factor augmented vector autoregression (FAVAR) model. All of these tests give support to the hypotheses tested.

Keywords: state owned banks; interest rate spreads; banking profitability; FAVAR. (search for similar items in EconPapers)
JEL-codes: E44 G21 G28 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2005, Revised 2005
References: Add references at CitEc
Citations:

Published in Anais do XXXIII Encontro Nacional de Economia, 2005.

Downloads: (external link)
ftp://repec.datametrica.com.br/RePEc/dtm/wpaper/Th ... estRatesSpread42.pdf Revised version, 2005. (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to connect to FTP server repec.datametrica.com.br: A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.

Related works:
Working Paper: THE IMPACT OF STATE OWNED BANKS ON INTEREST RATES SPREAD (2005)
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:dtm:wpaper:42

Access Statistics for this paper

More papers in Working Papers from Datamétrica Consultoria Econômica Contact information at EDIRC.
Bibliographic data for series maintained by Mirelle Queiroz ( this e-mail address is bad, please contact ).