The Impact of Bank Regulations, Concentration, and Institutions on Bank Margins

Demirguc-Kunt, Asli ; Laeven, Luc ; Levine, Ross

World Bank, Washington, DC

关键词: ACCOUNTABILITY;    ACCOUNTING;    BANK ASSETS;    BANK CAPITALIZATION;    BANK FOR INTERNATIONAL SETTLEMENTS;   

DOI  :  10.1596/1813-9450-3030
RP-ID  :  WPS3030

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines the impact of bankregulations, concentration, inflation, and nationalinstitutions on bank net interest margins using data fromover 1,400 banks across 72 countries while controlling forbank-specific characteristics. The data indicate thattighter regulations on bank entry and bank activities boostnet interest margins. Inflation also exerts a robust,positive impact on bank margins. While concentration ispositively associated with net interest margins, thisrelationship breaks down when controlling for regulatoryimpediments to competition and inflation. Furthermore, bankregulations become insignificant when controlling fornational indicators of economic freedom or property rightsprotection, while these institutional indicators robustlyexplain cross-bank net interest margins. So, bankregulations cannot be viewed in isolation. They reflectbroad, national approaches to private property and competition.