Integration benefits on EU retail credit markets: evidence from interest rate pass-through

Arbeitspapier

Lending and borrowing interest rates are often slow to adjust to changing capital market conditions. This paper argues that national differences of the pass-through speed in the EU can be regarded as a retail-oriented indicator of financial integration. Based on an ECB database the speed of interest rate adjustments for different markets and countries is measured - showing a considerable fragmentation of markets. Simulations show how much consumers in some countries could gain from a convergence of adjustment speed on the fastest levels.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 02-26

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Interest Rates: Determination, Term Structure, and Effects ; International Financial Markets
• Subject: interest rate pass-through ; financial market integration ; Kreditmarkt ; Retail Banking ; Marktintegration ; Zinsdifferenz ; Anpassung ; Geldmarkt ; Schätzung ; EU-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Heinemann, Friedrich ; Schüler, Martin
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/24780
• Last update: 10.03.2025, 11:42 AM CET