Arbeitspapier
Key determinants of net interest margin of EU banks in the zero lower bound of interest rates
In this paper, we analyse a relationship between net interest margin (NIM) of EU banks and market interest rates in a low-interest rate environment. We contribute to the literature when examining a large sample of annual data on 629 banks from EU member countries during the 2011-2016 period, which also covers the period of zero and negative rates. We test three hypotheses and come to the three main conclusions. First, NIM eroded during the whole observed period for all types of investigated banks. Second, a higher market concentration, proxied by the Herfindahl index, leads to higher NIM. Finally, we show a positive concave relationship of NIM with short-term interest rate observed in previous studies, which supports the suspected non-linearity in situation of zero lower bound of interest rates. Contrary to other researchers, we find a negative relationship between NIM and the yield curve slope.
- Sprache
-
Englisch
- Erschienen in
-
Series: IES Working Paper ; No. 02/2019
- Klassifikation
-
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Interest Rates: Determination, Term Structure, and Effects
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Thema
-
banks
net interest margin
Herfindahl index
interest rates
profitability
system GMM
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hanzlík, Petr
Teplý, Petr
- Ereignis
-
Veröffentlichung
- (wer)
-
Charles University in Prague, Institute of Economic Studies (IES)
- (wo)
-
Prague
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hanzlík, Petr
- Teplý, Petr
- Charles University in Prague, Institute of Economic Studies (IES)
Entstanden
- 2019
Ähnliche Objekte (12)
Banks' net interest margin and the level of interest rates
Banks' Net Interest Margin and the Level of Interest Rates
Banks Net Interest Margin and the Level of Interest Rates
The fallacy of the natural rate of interest and zero lower bound economics
Fiscal activism and the zero nominal interest rate bound
Implications of negative interest rates for the net interest margin and lending of euro area banks
Exchange-rate policy and the zero bound on nominal interest
Fiscal Policy, Interest Rate Spreads, and the Zero Lower Bound
Exchange-rate policy and the zero bound on nominal interest
Quantifying the components of the banks' net interest margin
The Fallacy of the natural rate of interest and Zero Lower Bound economics : Why negative interest rates may not remedy Keynesian unemployment
Monetary policy and the zero bound to interest rates : a review
Banks' net interest margin and the level of interest rates
Banks' Net Interest Margin and the Level of Interest Rates
Banks Net Interest Margin and the Level of Interest Rates
The fallacy of the natural rate of interest and zero lower bound economics
Fiscal activism and the zero nominal interest rate bound
Implications of negative interest rates for the net interest margin and lending of euro area banks
Exchange-rate policy and the zero bound on nominal interest
Fiscal Policy, Interest Rate Spreads, and the Zero Lower Bound
Exchange-rate policy and the zero bound on nominal interest
Quantifying the components of the banks' net interest margin
The Fallacy of the natural rate of interest and Zero Lower Bound economics : Why negative interest rates may not remedy Keynesian unemployment
Monetary policy and the zero bound to interest rates : a review
Banks' net interest margin and the level of interest rates
Banks' Net Interest Margin and the Level of Interest Rates
Banks Net Interest Margin and the Level of Interest Rates
The fallacy of the natural rate of interest and zero lower bound economics
Fiscal activism and the zero nominal interest rate bound
Implications of negative interest rates for the net interest margin and lending of euro area banks
Exchange-rate policy and the zero bound on nominal interest
Fiscal Policy, Interest Rate Spreads, and the Zero Lower Bound
Exchange-rate policy and the zero bound on nominal interest
Quantifying the components of the banks' net interest margin
The Fallacy of the natural rate of interest and Zero Lower Bound economics : Why negative interest rates may not remedy Keynesian unemployment