کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
5056608 1371647 2013 19 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Financial intermediation costs in low income countries: The role of regulatory, institutional, and macroeconomic factors
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
Financial intermediation costs in low income countries: The role of regulatory, institutional, and macroeconomic factors
چکیده انگلیسی

We analyze factors driving persistently higher financial intermediation costs in low-income countries (LICs) relative to emerging market (EM) country comparators. Using the net interest margin as a proxy for financial intermediation costs at the bank level, we find that within LICs a substantial part of the variation in interest margins can be explained by bank-specific factors: margins tend to increase with higher riskiness of credit portfolio, lower bank capitalization (or lower risk aversion), and smaller bank size. Overall, we find that concentrated market structures and lack of competition in LICs banking systems and institutional weaknesses constitute the key impediments preventing financial intermediation costs from declining. Our results provide strong evidence that policies aimed at fostering banking competition and strengthening institutional frameworks can reduce intermediation costs in LICs.

► Concentrated market structures and lack of competition in LICs banking industries remain key impediments preventing financial intermediation costs from declining. ► Low institutional capacity and tight regulatory constrains also play a prominent role in boosting financial intermediation costs in LICs. ► Within LICs, financial intermediation costs tend to increase with higher riskiness of the credit portfolio, lower bank capitalization, and smaller bank size.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Economic Systems - Volume 37, Issue 1, March 2013, Pages 92-110
نویسندگان
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