Banking Spreads in Latin America
R. Gaston Gelos
No 2006/044, IMF Working Papers from International Monetary Fund
Intermediation spreads in Latin America are high by international standards. This paper examines the determinants of bank interest margins in that region using bank and country-level data from 85 countries, including 14 Latin American economies. The results suggest that Latin America has higher interest rates, less efficient banks, and larger reserve requirements than other regions and that these factors have a significant impact on spreads. However, Latin American countries do not differ markedly from their peers in other aspects that are found important in determining the cost of financial intermediation, such as inflation and bank profit taxation.
Keywords: WP; bank; interest rate; concentration ratio; Banking spreads; financial intermediation; interest margin; bank spread; case bank; bank competition; Latin America's banks' overhead; balance-sheet information; bank indices; Reserve requirements; Competition; Deposit rates; Legal support in revenue administration; Emerging and frontier financial markets; Global (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (46) Track citations by RSS feed
Downloads: (external link)
Journal Article: BANKING SPREADS IN LATIN AMERICA (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2006/044
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().