Article ID Journal Published Year Pages File Type
1003080 Research in International Business and Finance 2016 14 Pages PDF
Abstract

This paper studies the determinants of net interest margins of banks (NIMs) in four South Asian countries (Bangladesh, India, Nepal and Pakistan) in the period 1997–2012 using panel data of 230 banks. The study is in line of Ho–Saunders (1981) dealership model and its later expansions but extended the model by adding new variable the relative size of the banks and also classifying the determinants of interest margins as bank specific, industry specific and macroeconomic specific variables. We found that liquidity and equity positions, required reserve and operating expenses to total asset ratios affect net interest margins positively while relative size of the banks, market power and economic growth affect inversely.

Graphical abstractYearly average net interest margins (%) in South Asian countries.Figure optionsDownload full-size imageDownload as PowerPoint slide

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Social Sciences and Humanities Business, Management and Accounting Business and International Management
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