EconPapers    
Economics at your fingertips  
 

Bank Efficiency and Market Structure: What Determines Banking Spreads in Armenia?

Holger Floerkemeier and Era Dabla-Norris

No 2007/134, IMF Working Papers from International Monetary Fund

Abstract: Despite far-reaching banking sector reforms and a prolonged period of macroeconomic stability and strong economic growth, financial intermediation in Armenia has lagged behind other transition countries, and interest rate spreads have remained higher than in most Central and Eastern European transition countries. This paper examines the determinants of interest rate spreads and margins in Armenia using a bank-level panel dataset for the period 2002 to 2006. We find that bank-specific factors, such as bank size, liquidity, and market power, as well as the market structure within which banks operate, explain a large proportion of crossbank, cross-time variation in spreads and margins. The results suggest that there is a large potential to increase cost efficiency and competition in the banking system.

Keywords: WP; bank; market share; loan (search for similar items in EconPapers)
Pages: 28
Date: 2007-06-01
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=20981 (application/pdf)

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:imf:imfwpa:2007/134

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

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 ().

 
Page updated 2024-05-16
Handle: RePEc:imf:imfwpa:2007/134