The Determinants of Bank Interest Rate Margins: An International Study

By Anthony Saunders, Liliana B. Schumacher. 2000

748 citations recorded by the source corpus.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/23c31d29cb04908876e8eadf8da646b3b081f19a

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Citations in the corpus

Determinants of Net Interest Margins of Commercial Banks in Kenya: A Panel Study (2012, background): “include Demirgüç-Kunt and Huizinga (1999) which introduced ownership variable, tax variable, financial leverage, and legal and institutional variables, Saunders and Schumaker (2000) tested the model to a multicountry setting and decompose bank margins into a regulatory component, a market structure ”
Consolidation and commercial bank net interest margins: Evidence from the old and new European Union members and candidate countries (2010, background): “Also, the results of Saunders and Schumacher (2000) indicated that net interest margin was affected by implicit interest payments, opportunity cost, capital-toasset ratio, market power and volatility of interest rate in six countries of the EU and in the US over the period 1988–1995.”
Determinants of bank interest margins in Russia: Does bank ownership matter? (2011, background): “…with this variation, some empirical studies apply a two-stage approach that isolates impacts of various imperfections not taken into account in the theoretical model before modelling the remaining “pure spread” as a function of the theoretically motivated factors (Saunders and Schumacher, 2000).”
Liquidity And Bank Performance (2015, neutral): “Maudos and Guevara (2004), and Saunders and Schumacher (2000) found a significant positive relationship between market liquidity risk and net interest income.”
Are foreign banks more profitable than domestic banks? Home- and host-country effects of banking market structure, governance, and supervision (2011, background): “Recent literature has also analyzed the effect of interest rates and banking market structure on such areas as bank profitability (Saunders and Schumacher, 2000; Maudos and Fernández de Guevara, 2004); credit risk (Angbazo, 1997; Maudos and Fernández de Guevara, 2004); non-interest revenue (Spathis…”
The Determinants of Bank Interest Spread in Brazil (2002, methodology): “In addition to the studies concerning Latin American countries, Saunders and Schumacher (2000) apply Ho and Saunders two step method to a sample of banks of seven OECD countries (namely Germany, Spain, France, Great Britain, Italy, United States and Switzerland).”
The Effects of Regulatory Reform on Competition in the Banking Industry (2003, background): “Saunders and Schumacher (1997) show that interest rate volatility, likely to be high in an environment of high and variable inflation, has a consistently positive effect on bank margins.”
Oil Prices and Bank Profitability: Evidence from Major Oil-Exporting Countries in the Middle East and North Africa (2009, background): “…Africa, Athanasoglu and others (2008) Greece, Athanasoglu and others (2006) South Eastern Europe, Demirguc-Kunt and Huizinga (1998) over 80 countries while Gelos (2006) examines Latin America, Angbazo (1997) and Berger and others (1987) the U.S. and Saunders and Schumacher (2000) the EU and U.S.”
The Determinants of Commercial Bank Profitability in Sub-Saharan Africa (2009, methodology): “Saunders and Schumacher (2000) apply the model of Ho and Saunders(1981) to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988–95.”
Intra- and extra-bank determinants of Latin American Banks' profitability (2016, methodology): “Additionally, Saunders and Schumacher (2000) use a multicountry setting and decompose bank margins into a regulatory component, a market structure component and a risk premium component.”
The determinants of bank net interest margins: A panel evidence from South Asian countries (2016, methodology): “Among others, Saunders and Schumacher (2000), Maudos and Guevara (2004) used the variable in the same way but Hawtrey and Liang (2008) used different approach to calculate the risk averseness of the banks by dividing securities plus other assets by volume of loans.”