Banking Market Conditions and Deposit Interest Rates
نویسنده
چکیده
This paper addresses the impact market conditions on bank deposit interest rates. Examining data for 1988-2000, we find that rates are affected by market size structure (defined as the distribution of market shares of banks of different sizes whether or not the market share is achieved entirely in that local market). This is in addition to the effects of market concentration noted in earlier work. We also find large differences between urban and rural markets. In rural areas, changes in market concentration have no effect on deposit rates. These findings have implications for antitrust policy in banking. These views are those of the author and may not represent the views of the Federal Reserve Bank of Chicago or the Federal Reserve System. Please address correspondence to Richard Rosen, Federal Reserve Bank of Chicago, phone 312322-6368, fax 312-294-6262, or email [email protected]. Banking Market Conditions And Deposit Interest Rates
منابع مشابه
Implications of the Imperfect Deposit Market Structure for Micro and Macro Discretionary Prudential Policies
The aim of this study is to theoretically investigate the role of the bank deposit market structure in how effective micro and macro prudential policies in determining the regulatory capital of banks in combination with monetary policy. To achieve this, a partial equilibrium analytical framework has been developed that includes rational economic entities and the possibility of contagion risk in...
متن کاملThe Interactions between the Lending Rates, Deposit Rates and Money Market Rates
T he present paper investigates the impact of the financial crisis on the interaction between the lending rates, deposit rates and money market rates through the process of retail bank interest rate pass-through in the countries of the Euro area. Among our findings is the heterogeneity of bank rate adjustments across sectors, loans and deposits. That was mainly marked during the pre-...
متن کاملDeposit Insurance , Institutions and Bank Interest Rates
Many recent institutional reforms of the financial system have relied on the introduction of an explicit scheme of Deposit Insurance. This instrument aims at two main targets, contributing to systemic stability and protecting depositors. However it may also affect the interest rate spread in the banking system, which can be viewed as an indicator of market power in this financial segment. This ...
متن کاملThe Effect of Electronic Banking on Deposit Attraction and Market Concentration in Iran’s Banking Industry
A long with the development of electronic banking as a result of rapid growth of information technology, many banking indices including concentration are affected. This influence is made among different variables of which the amount of banks’ deposits and the level of deposit attraction are the most important. This study the influence of electronic banki...
متن کاملBank mergers and the dynamics of deposit interest rates
Despite extensive research interest in the last decade, the banking literature has not reached a consensus on the impact of bank mergers on deposit rates. In particular, results on the dynamics of deposit rates surrounding bank mergers vary substantially across studies. In this paper, we aim for a comprehensive empirical analysis of a bank merger’s impact on deposit rate dynamics. We base the a...
متن کامل