Interes rate spreads in an emerging economy: the case of Pakistan´s commercial banking sector

Afzal, Ayesha and Mirza, Nawazish (2012) Interes rate spreads in an emerging economy: the case of Pakistan´s commercial banking sector. Ekonomska istraživanja (4). pp. 987-1004. ISSN 1331-677X

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Sažetak

This paper explores the determinants of interest rate spreads in Pakistan´s commercial banking sector in post transition period (2004-2009) using an exhaustive set of macro and firm level variables to analyze their impact on intermediary efficiency. We introduce two innovative variables of default likelihood indicator (Black Merton and Scholesoption pricing framework) and proportion of public sector deposits in total deposits to explain the variation in spreads. The results suggest that intermediary efficiency is affected by bank size, operational efficiency, asset quality, liquidity, risk absorption, capacity and GDP growth rate. There is evidence for deposit market share as well as deposit market concentration establishing the presence of an interest sensitive deposit market. We could not find support for impact of interest rate volatility and financial development indicator on banking spreads.

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Tip objekta:	Članak
Mentor:	NIJE ODREĐENO
Dodatne informacije:	4/2012
Ključni pojmovi:	banking spreads, interest margins, Pakistan´s financial system
Teme:	3 Društvene znanosti > 33 Ekonomija. Ekonomska znanost > 336 Financije. Uključujući: Javne financije. Bankarstvo. Novac > 336.7 Novac. Monetarni sustav. Bankarstvo. Burze > 336.71 Banke. Bankarstvo
Odjeli:	Odjel za ekonomiju i turizam "Dr. Mijo Mirković"
Datum pohrane:	08 Apr 2013 06:19
Zadnja promjena:	08 Apr 2013 06:19
URI:	http://eknjiznica.unipu.hr/id/eprint/2162

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