Financial Intermediation Costs in Low-Income Countries : : The Role of Regulatory, Institutional, and Macroeconomic Factors / / Tigran Poghosyan

• Record Nr.: UNINA9910828282303321
• Autore: Poghosyan Tigran
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2012
• ISBN: 1-4755-2280-0; 1-4755-6413-9
• Edizione: [1st ed.]
• Descrizione fisica: 1 online resource (36 p.)
• Collana: IMF Working Papers
• Disciplina: 332.152
• Soggetti: Intermediation (Finance) - Developing countries - Econometric models; Banks and Banking; Finance: General; Money and Monetary Policy; Inflation; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; Financial Institutions and Services: Government Policy and Regulation; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill; Monetary Policy; General Financial Markets: General (includes Measurement and Data); Price Level; Deflation; Banking; Financial services law & regulation; Monetary economics; Finance; Macroeconomics; Credit risk; Reserve requirements; Loan loss provisions; Competition; Financial regulation and supervision; Monetary policy; Prices; Financial markets; Banks and banking; Financial risk management; State supervision; Ghana
• 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 systems and institutional weaknesses constitute the key impediments preventing financial intermediation costs from declining. Our results provide strong evidence that policies aimed at fostering banking competition and strengthening institutional frameworks can reduce intermediation costs in LICs.