Why Have Bank Interest Margins Been so High in Indonesia Since the 1997/1998 Financial Crisis? - Université de Limoges Accéder directement au contenu
Pré-Publication, Document De Travail Année : 2012

Why Have Bank Interest Margins Been so High in Indonesia Since the 1997/1998 Financial Crisis?

Résumé

We investigate the determinants of net interest margins of Indonesian banks after the 1997/1998 financial crisis. Using data for 93 Indonesian banks over the 2001-2009 period, we estimate an econometric model using a pooled regression as well as static and dynamic panel regressions. Our results confirm that the structure of loan portfolios matters in the determination of interest margins. Operating costs, market power, risk aversion and liquidity risk have positive impacts on interest margins, while credit risk and cost to income ratio are negatively associated with margins. Our results also corroborate the loss leader hypothesis on cross-subsidization between traditional interest activities and non-interest activities. State- owned banks set higher interest margins than other banks, while margins are lower for large banks and for foreign banks.
Fichier principal
Vignette du fichier
trinugroho_al_2012.pdf (703.71 Ko) Télécharger le fichier
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

hal-00916531 , version 1 (10-12-2013)

Identifiants

  • HAL Id : hal-00916531 , version 1

Citer

Irwan Trinugroho, Agusman Agusman, Amine Tarazi. Why Have Bank Interest Margins Been so High in Indonesia Since the 1997/1998 Financial Crisis?. 2012. ⟨hal-00916531⟩

Collections

UNILIM LAPE
249 Consultations
7733 Téléchargements

Partager

Gmail Facebook X LinkedIn More