The Monetary Policy Regime and Banking Spreads in Barbados

The paper analyzes the determinants of banking spreads in Barbados, with a view to identifying the role of the monetary policy regime in explaining high spreads. The paper finds that interest rate spreads for Barbados are higher than would be suggested by its macroeconomic performance. Banking concentration and bank-specific variables, including bank size and provisions for nonperforming loans, do not have an important role in explaining variations in bank spreads. Rather, it appears that monetary policy variables, such as reserve requirements and capital controls, are the most important determinants of spreads.

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Year of publication:	2006-09-01
Authors:	Valderrama, Laura ; Samuel, Wendell A.
Institutions:	International Monetary Fund (IMF)
Subject:	Interest rates \| Economic conditions \| bank spreads \| banking \| bank size \| deposit rate \| financial intermediation \| banking sector \| international financial statistics \| bank interest \| banking concentration \| deposit rates \| bank spread \| financial system \| reserve requirements \| macroeconomic stability \| bank credit \| bank policy \| bank interest margins \| financial sector \| financial liberalization \| banking system \| financial institutions \| net interest margin \| reserve requirement \| deposit_rate \| bank lending \| financial regulation \| international capital markets \| international capital \| deposit _ rate \| probability of default \| bonds \| financial market \| bond spreads \| banks ? assets \| market bond \| banking markets \| bank interest rate \| bank competition \| banking systems \| interest rate ceilings \| banks ? loan \| bank of mauritius \| bank activity \| bank loans \| banking sectors \| country comparison \| hedging \| bank supervision \| bank fragility \| excess liquidity \| bank profit \| banks with assets \| access to international capital \| hedging tool \| financial stability \| foreign exchange \| emerging market bond \| bank of england \| international finance \| financial structure \| financial economics \| private bank \| bond \| financial reforms \| bank assets \| central banking \| bank of jamaica \| bank debtors \| bank deposits

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 06/211 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005599356