Determinants of bank net interest margins in Fiji, a small island developing state

Autor:	Parmendra Sharma, Neelesh Gounder
Rok vydání:	2012
Předmět:	Macroeconomics Economics and Econometrics Opportunity cost Reserve requirement Net interest margin Economics Market power Monetary economics Liquidity risk Finance Net interest income Panel data Credit risk
Zdroj:	Applied Financial Economics. 22:1647-1654
ISSN:	1466-4305 0960-3107
DOI:	10.1080/09603107.2012.674202
Popis:	This article investigates the determinants of Net Interest Margins (NIM) of banks in Fiji, a Small Island Developing State (SIDS) in the South Pacific, over the period 2000–2010. Based mainly on the Ho and Saunders’ (1981) dealership model and extensions thereto, this study uses a number of panel data estimation techniques to control for possible heterogeneity across banks and various assumptions about errors. Consistent with the theoretical model, NIM has a positive association with implicit interest payment, operating cost, market power and credit risk, and a negative association with the quality of management and liquidity risk. However, the association with bank capital and opportunity cost of required reserves do not conform to expectations. Policy implications are discussed.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::32f25f0858e123f336c080cb0eea2687 https://doi.org/10.1080/09603107.2012.674202 Zobrazit plný text záznamu Plný text ve formátu PDF Plný text ve formátu HTML
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