Financial intermediation costs in low-income countries [[electronic resource] ] : the role of regulatory, institutional, and macroeconomic factors / / prepared by Tigran Poghosyan

• Record Nr.: UNINA9910453034703321
• Pubbl/distr/stampa: [Washington, D.C.], : International Monetary Fund, 2012
• ISBN: 1-4755-2280-0; 1-4755-6413-9
• Descrizione fisica: 1 online resource (36 p.)
• Collana: IMF working paper ; ; WP/12/140
• Altri autori (Persone): PoghosyanTigran
• Soggetti: Intermediation (Finance) - Developing countries - Econometric models; Electronic books.
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "Fiscal Affairs Department and Strategy, Policy, and Review Department."; "May 2012."
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover; Contents; I. Introduction; II. Interest Margin Decomposition; A. Conceptual Framework; B. Decomposition Results; III. Econometric Analysis of Bank- and Country-Specific Determinants of Interest Margins; A. Model Specification; B. Variables; C. Descriptive Statistics; D. Results; IV. Robustness Checks; V. Conclusions; References; Figures; 1. Comparison of Implicit Net Interest Margins in LICs and EMs; 2. Percentile Distribution of Net Interest Margin Determinants in LICs and EMs; 3. Median Interest Margins in LICs and EMs by Countries; Tables; 1. Variable Definition and Sources; 2. Descriptive Statistics3. Correlations Matrix; 4. Estimation Results Controlling for Bank-Specific Determinants; 5. Estimation Results Controlling for Macroeconomic Variables; 6. Estimation Results Controlling for Institutional Variables; 7. Estimation Results Controlling for Regulatory Variables; 8. Robustness Check for LICs: Using Market Share Instead of Market Concentration; 9. Robustness Check for LICs: Using Loan Market Concentration; 10. Robustness Check for LICs: Using Deposit Market Concentration; 11. Robustness Check for LICs: Using Interaction of Market Concentration with Regional Dummies12. Robustness Check for LICs: ; Using Annual Average Variables
• Sommario/riassunto: We analyze factors driving persistently higher financial intermediation costs in low-income countries (LICs) relative to emerging market (EMs) 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, and smaller bank size. Overall, we find that concentrated market structures and lack of competition in LICs banking system