Search Results

Showing results 1 to 1 of approximately 1.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Low-for-long 

Working Paper
"Low-For-Long" Interest Rates and Banks' Interest Margins and Profitability : Cross-Country Evidence

Interest rates in many advanced economies have been low for almost a decade now and are often expected to remain so. This creates challenges for banks. Using a sample of 3,385 banks from 47 countries from 2005 to 2013, we find that a one percentage point interest rate drop implies an 8 basis points lower net interest margin, with this effect greater (20 basis points) at low rates. Low rates also adversely affect bank profitability, but with more variation. And for each additional year of "low for long", margins and profitability fall by another 9 and 6 basis points, respectively.
International Finance Discussion Papers , Paper 1197

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

E43 1 items

G21 1 items

FILTER BY Keywords

PREVIOUS / NEXT