| Description |
1 online resource (26 pages) : color illustrations |
| Series |
IMF working paper, 1018-5941 ; WP/15/96 |
|
IMF working paper ; WP/15/96.
|
| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Banking Systems in the Pacific Islands: A Few Stylized Facts; III. Literature Review; IV. Methodology; V. Results; VI. Conclusions and Policy Implications; References; Table IV: Impact of Macroeconomic, Banking Sector Variables, and Contemporaneous Deposit Rate on Lending Rate; Table IIIb: Impact of Macroeconomic and Banking Sector Variables on Spreads; Table IIIa: Impact of Macroeconomic and Banking Sector Variables on Spreads; Table II: Summary Statistics; Table I: Data Definitions and Sources; Footnotes |
| 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. --Abstract |
| Notes |
"May 2015." |
|
"Asia and Pacific Department." |
| Bibliography |
Includes bibliographical references (pages 20-21) |
| Notes |
English |
|
Online resource; title from pdf title page (IMF.org Web site, viewed May 7, 2015) |
| Subject |
Interest rates -- Islands of the Pacific
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Banks and banking -- Islands of the Pacific
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Economic development -- Islands of the Pacific
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Banks and banking
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Economic development
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Interest rates
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Finance.
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Business & Economics.
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Banking.
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Pacific Ocean -- Islands of the Pacific
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| Form |
Electronic book
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| Author |
Klyuev, Vladimir.
|
|
Serechetapongse, Anuk.
|
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International Monetary Fund. Asia and Pacific Department.
|
| ISBN |
9781484362440 |
|
1484362446 |
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9781475579048 |
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1475579047 |
|
1484362268 |
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9781484362266 |
|
1484362608 |
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9781484362600 |
|
