| Autor: |
Jiang, Bo, Tzavellas, Hector, Yang, Xiaoying |
| Předmět: |
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| Zdroj: |
Journal of Risk & Financial Management; May2022, Vol. 15 Issue 5, p194-194, 15p |
| Abstrakt: |
In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document two stylized facts: the net interbank funding ratio is negatively correlated with net interest margin (NIM), as well as with the cost-to-income ratio (CIR). To rationalize these two facts, we embed the interbank market into a BLP model framework. The model is calibrated using Chinese listed banks' data. A counterfactual experiment reveals that shutting down the interbank market will lead to a decline in NIM and bank profits. Our results indicate that the interbank market can facilitate specialization and reduce the intensity of deposit competition. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
| Externí odkaz: |
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