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Author: Rose Ngugi
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 50
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Book Description
Author: Rose Ngugi
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 50
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Book Description
Author: Maureen Were
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Despite the liberalization of the financial sector, high interest rate spreads is still an issue of concern in a number of African countries, including Kenya. This paper investigates the determinants of interest rate spreads in Kenya's banking sector based on panel data analysis. The empirical results show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size based on bank assets, credit risk as measured by non-performing loans to total loans ratio, liquidity risk, return on average assets and operating costs. The impact of macroeconomic factors such as real economic growth and inflation is not significant. Similarly, the impact of policy rate as an indicator of monetary policy is found to be positive but weak. On average, big banks have higher spreads compared to small banks. There is need for explore policy options meant to enhance competition in the industry and measures to break market dominance will be one such option. Further, the banking sector needs to explore internal as well as industry-driven strategies that counter some of the bank-specific factors associated with higher spreads. These could range from diversification of products to investment in cost-saving and efficient forms of technology.
Author: Rose Ngugi
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 62
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Author: Asl? Demirgüç-Kunt
Publisher: World Bank Publications
ISBN:
Category : Bancos comerciales
Languages : en
Pages : 52
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Book Description
March 1998 Differences in interest margins reflect differences in bank characteristics, macroeconomic conditions, existing financial structure and taxation, regulation, and other institutional factors. Using bank data for 80 countries for 1988-95, Demirgüç-Kunt and Huizinga show that differences in interest margins and bank profitability reflect various determinants: * Bank characteristics. * Macroeconomic conditions. * Explicit and implicit bank taxes. * Regulation of deposit insurance. * General financial structure. * Several underlying legal and institutional indicators. Controlling for differences in bank activity, leverage, and the macroeconomic environment, they find (among other things) that: * Banks in countries with a more competitive banking sector-where banking assets constitute a larger share of GDP-have smaller margins and are less profitable. The bank concentration ratio also affects bank profitability; larger banks tend to have higher margins. * Well-capitalized banks have higher net interest margins and are more profitable. This is consistent with the fact that banks with higher capital ratios have a lower cost of funding because of lower prospective bankruptcy costs. * Differences in a bank's activity mix affect spread and profitability. Banks with relatively high noninterest-earning assets are less profitable. Also, banks that rely largely on deposits for their funding are less profitable, as deposits require more branching and other expenses. Similarly, variations in overhead and other operating costs are reflected in variations in bank interest margins, as banks pass their operating costs (including the corporate tax burden) on to their depositors and lenders. * In developing countries foreign banks have greater margins and profits than domestic banks. In industrial countries, the opposite is true. * Macroeconomic factors also explain variation in interest margins. Inflation is associated with higher realized interest margins and greater profitability. Inflation brings higher costs-more transactions and generally more extensive branch networks-and also more income from bank float. Bank income increases more with inflation than bank costs do. * There is evidence that the corporate tax burden is fully passed on to bank customers in poor and rich countries alike. * Legal and institutional differences matter. Indicators of better contract enforcement, efficiency in the legal system, and lack of corruption are associated with lower realized interest margins and lower profitability. This paper-a product of the Development Research Group-is part of a larger effort in the group to study bank efficiency.
Author: Mr.Bart Turtelboom
Publisher: International Monetary Fund
ISBN: 1451939183
Category : Business & Economics
Languages : en
Pages : 46
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Book Description
This paper undertakes a survey of theoretical considerations and an analysis of the experience of five African countries with interest rate liberalization. Despite substantial progress in monetary policy reforms, liberalization has only partially affected the level and variability of interest rates. Several factors—macroeconomic instability, oligopolistic financial markets, the absence of developed capital markets, as well as the sequencing of the liberalization programs and the asymmetric availability of information—explain the increase in the spread between lending and deposit rates as well as the rather inflexible pattern of interest rates during the transition to a market-based financial system.
Author: Luc Eyraud
Publisher: International Monetary Fund
ISBN: 1513576518
Category : Business & Economics
Languages : en
Pages : 85
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Book Description
Sub-Saharan African countries are facing an unprecedented health and economic crisis that is likely to severely hurt credit quality and raise non-performing loans from already high levels. Banks have a critical role to play not only during the crisis by providing temporarily relief to businesses and households, but also during the recovery by supporting economic activity and facilitating the structural transformations engaged by the pandemic.
Author: King K. Holmes
Publisher: World Bank Publications
ISBN: 1464805253
Category : Medical
Languages : en
Pages : 1027
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Book Description
Infectious diseases are the leading cause of death globally, particularly among children and young adults. The spread of new pathogens and the threat of antimicrobial resistance pose particular challenges in combating these diseases. Major Infectious Diseases identifies feasible, cost-effective packages of interventions and strategies across delivery platforms to prevent and treat HIV/AIDS, other sexually transmitted infections, tuberculosis, malaria, adult febrile illness, viral hepatitis, and neglected tropical diseases. The volume emphasizes the need to effectively address emerging antimicrobial resistance, strengthen health systems, and increase access to care. The attainable goals are to reduce incidence, develop innovative approaches, and optimize existing tools in resource-constrained settings.
Author:
Publisher: Universal-Publishers
ISBN: 1612335101
Category :
Languages : en
Pages : 50
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CONTENTS: 1.Determinants of Commercial Bank Interest Rate Margins in Swaziland by Sibusiso M. Khumaloand, Yinusa D. Olalekan & Francis Nathan Okurut 2. New Banking Technology and Service Quality in Indian Public Sector Banks: A Micro Level Study by A. Abdul Raheem & M. Krishnamoorthy 3. Supply Response of Perennial Crops: A Case of Balochistan Apricots by Mohammad Pervez Wasim 4. Government Debt and Long-Term Interest Rate: Application of an Extended Open-Economy Loanable Funds Model to South Africa by Yu Hsing Click here to download full PDF edition of this issue (free limited time open access) Go to Journal Homepage Go to Series editor website About the Journal International Journal of Economics and Business Studies (IJEBS) is a peer-reviewed journal, which is intended not only to promote the discussion on challenging economic and business issues at applied and policy levels but also to disseminate research information and knowledge in latest developments in business and economics. The main objective of IJEBS is to provide an intellectual platform for researchers, in which research in alternative paradigms for business and economic inquiry could be analysed and discussed. The journal provides opportunities for economists and business related professionals in a global realm to publish their paper in one source. The International Journal of Economics and Business Studies is also indented to bring together academicians and professionals from all related business and economics fields to interact with academics inside and outside their own particular disciplines.
Author: Njuguna Ndung'u
Publisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 56
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Book Description
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451821190
Category : Business & Economics
Languages : en
Pages : 29
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Book Description
This Selected Issues paper on Kenya reviews Kenya’s external stability in a context where the exchange rate has strengthened and capital inflows are playing an increasingly important role. Kenya’s external current account deficit has widened, reflecting strong import volumes as well as rising import prices, particularly for oil, but external debt as a percent of GDP has declined steadily. Underlying these developments have been a steady increase in capital inflows and a remarkable rebound of economic growth since 2003 after two decades of stagnation.
