| Description |
1 online resource (26 pages) : illustrations |
| Series |
IMF working paper ; WP/14/163 |
|
IMF working paper ; WP/14/163.
|
| Contents |
Cover; Determinants of Banks'' Net Interest Margins in Honduras; I. INTRODUCTION; II. LITERATURE REVIEW; III. BACKGROUND: INSTITUTIONAL STRUCTURE OF THE BANKING SECTOR; IV. METHODOLOGY AND DATA; A.A Basic Cost-Structure Empirical Model; B. Incorporating Risks; C. Other Considerations; D. Empirical Estimation; E. Data Overview; V. ESTIMATION RESULTS; VI. CONCLUSIONS AND POLICY IMPLICATIONS; References; ANNEX: Attachments |
| Summary |
This paper analyzes the determinants of banks' net interest margins in Honduras during 1998 to 2013---period characterized by increasing banks' net interest margins, foreign bank participation and consolidation. In line with findings in the previous literature, we find that operating costs are the most important drivers of banks' net interest margins. We also find that competition among banks has led to higher concentration and that funding by parent banks positively impacts foreign banks' net interest margins. Together, these results suggest that banks, particularly foreign banks, are under pressure to consolidate and reduce operating costs in order to offer competitive interest margins. We conclude that further structural reforms and consolidation may lower banks' net interest margins. --Abstract |
| Notes |
"September 2014"' |
|
"Western Hemisphere Department." |
| Bibliography |
Includes bibliographical references (pages 16-19) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed September 10, 2014) |
| Subject |
Banks and banking -- Honduras -- Econometric models
|
|
Interest rates -- Honduras -- Econometric models
|
|
Banks and banking -- Econometric models
|
|
Interest rates -- Econometric models
|
|
Honduras
|
| Form |
Electronic book
|
| Author |
Martinez, Edder, author
|
|
Pineda, Anabel, author
|
|
International Monetary Fund. Western Hemisphere Department, issuing body.
|
| ISBN |
9781498331661 |
|
1498331661 |
|
