Interest spreads in banking : costs, financial taxation, market power, and loan quality in the Colombian Case 1974-96 / prepared by Adolfo Barajas, Roberto Steiner, and Natalia Salazar
A key variable in the financial system is the spread between lending and deposit interest rates. When it is too large, it is generally regarded as a considerable impediment to the expansion and development of financial intermediation, as it discourages potential savers with low returns on deposits and limits financing for potential borrowers, thus reducing feasible investment opportunities and therefore the growth potential of the economy
Bibliography
Includes bibliographical references (pages 39-41)
Notes
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