07116oam 22014894 450 991077920190332120230802005502.01-4755-2280-01-4755-6413-9(CKB)2550000000107089(EBL)1606759(SSID)ssj0000952967(PQKBManifestationID)11504678(PQKBTitleCode)TC0000952967(PQKBWorkID)10905938(PQKB)11515332(MiAaPQ)EBC1606759(Au-PeEL)EBL1606759(CaPaEBR)ebr10574682(OCoLC)870245008(IMF)WPIEE2012140(IMF)WPIEA2012140(EXLCZ)99255000000010708920020129d2012 uf 0engur|n|---|||||txtccrFinancial Intermediation Costs in Low-Income Countries : The Role of Regulatory, Institutional, and Macroeconomic Factors /Tigran PoghosyanWashington, D.C. :International Monetary Fund,2012.1 online resource (36 p.)IMF Working Papers"Fiscal Affairs Department and Strategy, Policy, and Review Department.""May 2012."1-4755-9234-5 1-4755-0393-8 Includes bibliographical references.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 Sources2. 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 Concentration11. Robustness Check for LICs: Using Interaction of Market Concentration with Regional Dummies12. Robustness Check for LICs: Using Annual Average VariablesWe 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.IMF Working Papers; Working Paper ;No. 2012/140Intermediation (Finance)Developing countriesEconometric modelsBanks and BankingimfFinance: GeneralimfMoney and Monetary PolicyimfInflationimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial Institutions and Services: Government Policy and RegulationimfEconomic Development: Financial MarketsimfSaving and Capital InvestmentimfCorporate Finance and GovernanceimfFinancing PolicyimfFinancial Risk and Risk ManagementimfCapital and Ownership StructureimfValue of FirmsimfGoodwillimfMonetary PolicyimfGeneral Financial Markets: General (includes Measurement and Data)imfPrice LevelimfDeflationimfBankingimfFinancial services law & regulationimfMonetary economicsimfFinanceimfMacroeconomicsimfCredit riskimfReserve requirementsimfLoan loss provisionsimfCompetitionimfFinancial regulation and supervisionimfMonetary policyimfPricesimfFinancial marketsimfBanks and bankingimfFinancial risk managementimfState supervisionimfGhanaimfIntermediation (Finance)Econometric models.Banks and BankingFinance: GeneralMoney and Monetary PolicyInflationBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial Institutions and Services: Government Policy and RegulationEconomic Development: Financial MarketsSaving and Capital InvestmentCorporate Finance and GovernanceFinancing PolicyFinancial Risk and Risk ManagementCapital and Ownership StructureValue of FirmsGoodwillMonetary PolicyGeneral Financial Markets: General (includes Measurement and Data)Price LevelDeflationBankingFinancial services law & regulationMonetary economicsFinanceMacroeconomicsCredit riskReserve requirementsLoan loss provisionsCompetitionFinancial regulation and supervisionMonetary policyPricesFinancial marketsBanks and bankingFinancial risk managementState supervisionPoghosyan Tigran1476622International Monetary Fund.Strategy, Policy, and Review Dept.DcWaIMFBOOK9910779201903321Financial Intermediation Costs in Low-Income Countries3801170UNINA