6533b871fe1ef96bd12d255b
RESEARCH PRODUCT
Changes in determinants of the interest margin in today’s economy
Gregorio Labatut-sererSalvador Climent SerranoElisabeth Bustos-contellsubject
Economics and EconometricsdiversificationliquidityNet interest marginmarket powerdiversification; fees and commissions; liquidity; market powereducationDiversification (finance)Annual reportMonetary economicslcsh:Regional economics. Space in economicsfees and commissionslcsh:HD72-88lcsh:HT388lcsh:Economic growth development planningMarket liquidityVariable (computer science)Income statementEconomicsBalance sheetMarket powerdescription
This study examined the interest margin following the significant drop in its contribution to credit institutions’ total income. Balance sheet variables, income statement and annual report variables, and external variables were studied separately. Variables that had not previously been studied in the literature were considered, and determinants that had already been studied were revisited after the reduction in the interest margin. The diversification of investment in associated companies and investment in fixed and variable income are causes of this decrease in the interest margin. Higher fees and commissions offset this decrease. Greater size and market power have reduced the interest margin. Regulations stipulated in the Basel III Accord regarding liquidity may adversely affect the solvency ratio. Results were obtained using econometric analysis of panel data. The analysis consisted of four separate regressions: one for balance sheet variables, one for income statement and annual report variables, one for external factors and one for annual effects.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-12-10 | Economic Research-Ekonomska Istraživanja |