Financial Liberalization, Bank Market Structure, and Financial Deepening : An Interest Margin Analysis »
Series: IMF Working Papers
Author(s): Abdourahmane Sarr
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 March 2000
Keywords: Financial liberalization, financial deepening, bank market structure, interest margin, deposit interest rate ceiling, deposit interest, deposit interest rates, banking services, banking industry
The paper shows that commercial banks’ ability to lower deposit interest rates (market power) can increase deposit mobilization. Interest expenses saved can subsidize and lower fees on checking and branching...