Benchmarking Costs of Financial Intermediation around the World
The costs of financial intermediation have important consequences for financial development. Using bank-level data for 160 countries during 2005-14, this paper analyzes the composition and sources of bank net interest margins. First, it uses an acc...
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| Format: | Working Paper |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/675611529434481262/Benchmarking-costs-of-financial-intermediation-around-the-world http://hdl.handle.net/10986/29931 |
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okr-10986-299312021-06-08T14:42:46Z Benchmarking Costs of Financial Intermediation around the World Calice, Pietro Zhou, Nan FINANCIAL INTERMEDIATION BANKING NET INTEREST MARGIN The costs of financial intermediation have important consequences for financial development. Using bank-level data for 160 countries during 2005-14, this paper analyzes the composition and sources of bank net interest margins. First, it uses an accounting decomposition framework to provide summary statistics on the size of net interest margins and highlight the cost and profit components in countries, regions, and income groups. Second, it uses regression analysis to examine the underlying bank-level, structural, macroeconomic, and institutional determinants of net interest margins. Finally, the paper uses the results of the econometric analysis to construct country-level bar charts of relative contributing factors to financial intermediation costs. The results provide evidence-based guidance on key areas of structural reforms to reduce the costs of financial intermediation. 2018-06-27T21:31:24Z 2018-06-27T21:31:24Z 2018-06 Working Paper http://documents.worldbank.org/curated/en/675611529434481262/Benchmarking-costs-of-financial-intermediation-around-the-world http://hdl.handle.net/10986/29931 English Policy Research Working Paper;No. 8478 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FINANCIAL INTERMEDIATION BANKING NET INTEREST MARGIN |
| spellingShingle |
FINANCIAL INTERMEDIATION BANKING NET INTEREST MARGIN Calice, Pietro Zhou, Nan Benchmarking Costs of Financial Intermediation around the World |
| relation |
Policy Research Working Paper;No. 8478 |
| description |
The costs of financial intermediation
have important consequences for financial development. Using
bank-level data for 160 countries during 2005-14, this paper
analyzes the composition and sources of bank net interest
margins. First, it uses an accounting decomposition
framework to provide summary statistics on the size of net
interest margins and highlight the cost and profit
components in countries, regions, and income groups. Second,
it uses regression analysis to examine the underlying
bank-level, structural, macroeconomic, and institutional
determinants of net interest margins. Finally, the paper
uses the results of the econometric analysis to construct
country-level bar charts of relative contributing factors to
financial intermediation costs. The results provide
evidence-based guidance on key areas of structural reforms
to reduce the costs of financial intermediation. |
| format |
Working Paper |
| author |
Calice, Pietro Zhou, Nan |
| author_facet |
Calice, Pietro Zhou, Nan |
| author_sort |
Calice, Pietro |
| title |
Benchmarking Costs of Financial Intermediation around the World |
| title_short |
Benchmarking Costs of Financial Intermediation around the World |
| title_full |
Benchmarking Costs of Financial Intermediation around the World |
| title_fullStr |
Benchmarking Costs of Financial Intermediation around the World |
| title_full_unstemmed |
Benchmarking Costs of Financial Intermediation around the World |
| title_sort |
benchmarking costs of financial intermediation around the world |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/675611529434481262/Benchmarking-costs-of-financial-intermediation-around-the-world http://hdl.handle.net/10986/29931 |
| _version_ |
1764470836966719488 |