Bank Margins and Profits in a World of Negative Rates

Allbwn ymchwil: Cyfraniad at gyfnodolynErthygl

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  • 2019 Bank margins and profits in a world of negative rates_Accepted

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    Embargo yn dod i ben: 28/02/21

    Trwydded: CC BY-NC-ND Dangos trwydded

Dangosydd eitem ddigidol (DOI)

By investigating the influence of negative interest rate policy (NIRP) on bank margins and profitability, this paper identifies country- and bank- specific characteristics that amplify or weaken the effect of NIRP on bank performance. Using a dataset comprising 7,359 banks from 33 OECD member countries over 2012-2016 and a difference-in-differences methodology, we find that bank margins and profits fell in NIRP-adopter countries compared to countries that did not adopt the policy. Moreover, this adverse NIRP effect depends on bank specific-characteristics such as size, funding structure, business models, assets repricing and product – line specialization. The effectiveness of the pass-through mechanism of NIRP can also be affected by the characteristics of a country's banking system, namely, the level of competition and the prevalence of fixed/floating lending rates.

Allweddeiriau

Iaith wreiddiolSaesneg
Rhif yr erthygl105613
CyfnodolynJournal of Banking and Finance
Cyfrol107
Dyddiad ar-lein cynnar22 Awst 2019
Dynodwyr Gwrthrych Digidol (DOIs)
StatwsCyhoeddwyd - Hyd 2019
Gweld graff cysylltiadau