Determinants of Banks' Net Interest Margins in Honduras

• Autorzy: Koffie Nassar , Edder Martinez , Anabel Pineda
• Języki publikacji: EN

Abstrakty

EN

This paper analyzes the determinants of banks' net interest margins in Honduras during 1998 to 2013 - a period characterized by increasing banks' net interest margins, foreign bank participation and consolidation. In line with findings in the previous literature, we find that operating costs are the most important drivers of banks' net interest margins. We also find that competition among banks has led to higher concentration and that funding by parent banks positively impacts foreign banks' net interest margins. Together, these results suggest that banks, particularly foreign banks, are under pressure to consolidate and reduce operating costs in order to offer competitive interest margins. We conclude that further structural reforms and consolidation may lower banks' net interest margins.

Słowa kluczowe

EN

Commercial banks; Foreign bank; Bank consolidation; Banking reform; Interest margin

PL

Banki komercyjne; Banki zagraniczne; Konsolidacja banków; Reforma bankowości; Marża odsetkowa

• Czasopismo: Journal of Banking and Financial Economics
• Rocznik: 2017
• Numer: nr 1(7)
• Strony: 5--27

Twórcy

autor

Koffie Nassar

• International Monetary Fund

autor

Edder Martinez

• Comisión Nacional de Bancos y Seguros, Honduras

autor

Anabel Pineda

• Comisión Nacional de Bancos y Seguros, Honduras

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Identyfikatory

DOI

10.7172/2353-6845.jbfe.2017.1.1