The Banking Spread and the Resource Cost of Capital

The paper provides a model of the banking firm in the macroeconomic intended to explain the determination of the spread between the banks' loan and deposit rates. The model focuses on the resource cost of capital in the detrmination of the spread. A statistical result confirms the prediction of the model, that is, the bank's spread is higher in low incomes economies.

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Authors:	Gómez, Javier
Institutions:	Banco de la Republica de Colombia
Subject:	Bank spread \| banking firm \| banking output \| interest rates

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Extent:	application/pdf
Series:	Borradores de Economia.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005274359