What Drives Interest Rate Spreads in Pacific Island Countries An Empirical Investigation is popular PDF and ePub book, written by Mr.Fazurin Jamaludin in 2015-05-04, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, What Drives Interest Rate Spreads in Pacific Island Countries An Empirical Investigation can be Read Online from any device for your convenience.
What Drives Interest Rate Spreads in Pacific Island Countries An Empirical Investigation Book PDF Summary
Growth has been sluggish in Pacific island countries (PICs). High cost of credit is likely one of the reasons. While the small scale, geographic dispersion, and vulnerability to shocks increase the cost and risk of credit in this country group, there is considerable variability in interest rate spreads both across countries and over time. This paper examines the determinants of lending rates and interest rate spreads in a panel of six PICs, extending the literature that was largely descriptive in nature or focused on a single country. Our results are in line with economic theory. We find that the size of the economy is negatively correlated with spreads, confirming the importance of scale. Inflation appears to have only marginal impact on spreads. High loan loss provisions and nonperforming loans increase the cost of credit. So does banking system concentration. Higher institutional quality is associated with lower spreads.
Detail Book of What Drives Interest Rate Spreads in Pacific Island Countries An Empirical Investigation PDF
- Author : Mr.Fazurin Jamaludin
- Release : 04 May 2015
- Publisher : International Monetary Fund
- ISBN : 9781484362266
- Genre : Business & Economics
- Total Page : 26 pages
- Language : English
- PDF File Size : 10,5 Mb
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