The Banking Spread and the Resource Cost of Capital

Serie

  • Borradores de economía

Resumen

  • 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 determination of the spread. A statistical result confirms the prediction of the model, that is, the bank's spread is higher in low incomes economies.

fecha de publicación

  • 1998-05

Líneas de investigación

  • Bank Spread
  • Banking Firm
  • Banking Output
  • Interest Rates

Issue

  • 92