Front Matter Page
Monetary and Exchange Affairs Department
Authorized for distribution by Arne B. Petersen
Contents
I. Introduction
II. Bank Optimal Interest Margin
III. The Interest Margin Empirical Model
IV. Results: Interest Margin and Deposit Level Equations
V. Lessons for Developing Countries
Figures
I. Interest Margin
2- Ratio of Interest Expenses to Noninterest Revenues
3. Nominal Service Fee
4. Average Deposit Interest Rate
5. Ratio of the Logarithms of Deposits and Services
6. Cross-Plot of the Logarithms of Deposits and Services
7. Cross-Plot of the Growth Rates of Deposits and Services
8. Annual Consumer Price Index Inflation Rate
9. Real Average Interest Rates on Assets (rrl) and Deposits (rrd)
Appendices
I. Table 1. Interest Margin and Service Fee Variables Definition
Table 2. Average Interest Rate Revenue: Equation (18)
Table 3. Deposit Level Equation (15)
II. Identifying Oligopoly Power: The Breshnahan (1982) Method
III. Properties of ε
IV. Advantages of using United States Banking data