Heterogeneity in bank pricing policies: The Czech evidence

Abstract

The Working Paper Series of the Czech National Bank (CNB) is intended to disseminate the results of the CNB's research projects as well as the other research activities of both the staff of the CNB and collaborating outside contributor, including invited speakers. The Series aims to present original research contributions relevant to central banks. It is refereed internationally. The referee process is managed by the CNB Research Department. The working papers are circulated to stimulate discussion. The views expressed are those of the authors and do not necessarily reflect the official views of the CNB.

Monetary Transmission Mechanism in Sri Lanka: A Comprehensive Assessment with New Evidence

“…This indicates the riskiness of loans in comparison to deposits (Horváth and Podpiera, 2012) and this is consistent with similar studies of Chong et al (2006) for Singapore, Liu et al (2008) for New Zealand and Zulkhibri (2012) for Malaysia etc. Meanwhile, high and almost complete long run pass-through (α 1 ) is observed for lending rates of LCBs and LSBs (AWPR and LRS, respectively in Panel A).…”

Bank efficiency and interest rate pass-through: Evidence from Czech loan products

“…Both before and after the crisis we find evidence of significant heterogeneity in bank pricing policies in the short run, but less so in the long run, which is consistent with the results of Gambacorta (2008) and Horvath & Podpiera (2012). Concerning the determinants of pricing policies, we find that the pass-through mechanism for deposit products influences the given bank's pass-through for loan products.…”

“…In contrast, Tieman (2004), examining the 1995-2004 period, suggests that the long-run pass-through in the Czech Republic is incomplete. Horvath & Podpiera (2012) examine the link between the money market rate and bank interest rate during the period 2004-2008 and find well-functioning, although not full, pass-through for both mortgages and corporate rates in the long run. They also investigate interest rate pass-through heterogeneity on the bank level, finding evidence that banks with a stable pool of deposits smooth interest rates and require a higher spread as compensation.…”

Profitability of Banks in Bosnia and Herzegovina: Panel Analysis

“…On the other hand, Horvath (2009) has shown that market force has no influence on the interest margins of Czech banks and that bigger banks with higher capital adequacy charge lower interest rates, and that interest margins are bigger for banks that have a higher ratio of loans and assets.…”