Banks' Net Interest Margin and the Level of Interest Rates
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Banks' Net Interest Margin and the Level of Interest Rates
Busch, Ramona | Memmel, Christoph
Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 3 : pp. 363–392
19 Citations (CrossRef)
Additional Information
Article Details
Author Details
Ramona Busch, Deutsche Bundesbank, Wilhelm-Epstein-Stra???e 14, 60431 Frankfurt am Main, Germany
Christoph Memmel, Deutsche Bundesbank, Wilhelm-Epstein-Stra???e 14, 60431 Frankfurt am Main
Cited By
-
Why Do Banks Bear Interest Rate Risk?
Memmel, Christoph
Schmalenbach Business Review, Vol. 70 (2018), Iss. 3 P.231
https://doi.org/10.1007/s41464-018-0051-5 [Citations: 6] -
German banks’ behavior in the low interest rate environment
Busch, Ramona | Littke, Helge C. N. | Memmel, Christoph | Niederauer, SimonFinancial Markets and Portfolio Management, Vol. 36 (2022), Iss. 3 P.267
https://doi.org/10.1007/s11408-021-00402-7 [Citations: 2] -
Mind the Income Gap - Partial Hedging of Interest Rate Risk within Banks' Business Model
Platte, Daniel | Wening, FabianSSRN Electronic Journal , Vol. (2021), Iss.
https://doi.org/10.2139/ssrn.3905888 [Citations: 0] -
The effect of Euribor on banking profitability: evidence from the Spanish banking system
Boto-García, David | Álvarez, Antonio | Baños Pino, José FranciscoEuropean Journal of Government and Economics, Vol. 10 (2021), Iss. 1 P.5
https://doi.org/10.17979/ejge.2021.10.1.7083 [Citations: 1] -
Interest rate shocks, competition and bank liquidity creation
Kick, Thomas
Financial Markets and Portfolio Management, Vol. 36 (2022), Iss. 4 P.409
https://doi.org/10.1007/s11408-022-00406-x [Citations: 1] -
Determinants of Banking Operational Efficiency and the Relationship Between the Factors to Market Price: Evidence from Indonesia
Siagian, Pariang
ECONOMICS, Vol. 11 (2023), Iss. 2 P.153
https://doi.org/10.2478/eoik-2023-0051 [Citations: 4] -
Interest Rate Shocks, Competition and Bank Liquidity Creation
Kick, Thomas K.
SSRN Electronic Journal, Vol. (2022), Iss.
https://doi.org/10.2139/ssrn.4103626 [Citations: 1] -
Why Are Interest Rates on Bank Deposits so Low?
Busch, Ramona | Memmel, ChristophCredit and Capital Markets – Kredit und Kapital, Vol. 54 (2021), Iss. 4 P.641
https://doi.org/10.3790/ccm.54.4.641 [Citations: 8] -
Do conventional monetary policy instruments matter in unconventional times?
Buchholz, Manuel | Schmidt, Kirsten | Tonzer, LenaJournal of Banking & Finance, Vol. 118 (2020), Iss. P.105858
https://doi.org/10.1016/j.jbankfin.2020.105858 [Citations: 5] -
Understanding the Role of Business Analytics
Impact of Macroeconomic and Bank-Specific Indicators on Net Interest Margin: An Empirical Analysis
Wani, Arif Ahmad | Haque, S. M. Imamul | Raina, Shahid Hamid2019
https://doi.org/10.1007/978-981-13-1334-9_4 [Citations: 1] -
A financial stress index for a highly dollarized developing country: The case of Lebanon
Ishrakieh, Layal Mansour | Dagher, Leila | El Hariri, SadikaCentral Bank Review, Vol. 20 (2020), Iss. 2 P.43
https://doi.org/10.1016/j.cbrev.2020.02.004 [Citations: 40] -
Banks' noninterest income and securities holdings in a low interest rate environment: The case of Italy
Molyneux, Philip | Reghezza, Alessio | Torriero, Chiara | Williams, JonathanEuropean Financial Management, Vol. 27 (2021), Iss. 1 P.98
https://doi.org/10.1111/eufm.12268 [Citations: 6] -
Did Interest Rates at the Zero Lower Bound Affect Lending of Commercial Banks? Evidence for the Euro Area
Belke, Ansgar | Dreger, ChristianJahrbücher für Nationalökonomie und Statistik, Vol. 239 (2019), Iss. 5-6 P.841
https://doi.org/10.1515/jbnst-2018-0098 [Citations: 1] -
Bank Intermediation Margin in Time of Negative Interest Rate Policy
Boungou, Whelsy | Mawusi, CharlesSSRN Electronic Journal , Vol. (2019), Iss.
https://doi.org/10.2139/ssrn.3495247 [Citations: 0] -
Interest and credit risk management in German banks
Dräger, Vanessa | Heckmann-Draisbach, Lotta | Memmel, ChristophGerman Economic Review, Vol. 22 (2021), Iss. 1 P.63
https://doi.org/10.1515/ger-2019-0114 [Citations: 7] -
Shifting Economic, Financial and Banking Paradigm
A Hybrid Method of MCDM for Evaluating Financial Performance of Vietnamese Commercial Banks Under COVID-19 Impacts
Nguyen, Phi-Hung | Tsai, Jung-Fa | Hu, Yi-Chung | Ajay Kumar, G. Venkata2022
https://doi.org/10.1007/978-3-030-79610-5_2 [Citations: 11] -
WILL GERMAN BANKS EARN THEIR COST OF CAPITAL?
Dombret, Andreas | Gündüz, Yalin | Rocholl, JörgContemporary Economic Policy, Vol. 37 (2019), Iss. 1 P.156
https://doi.org/10.1111/coep.12266 [Citations: 11] -
Bank lending margins in a negative interest rate environment
Boungou, Whelsy | Mawusi, CharlesInternational Journal of Finance & Economics, Vol. 28 (2023), Iss. 1 P.886
https://doi.org/10.1002/ijfe.2455 [Citations: 8] -
How Would US Banks Fare in a Negative Interest Rate Environment?
Arseneau, David M.
Finance and Economics Discussion Series, Vol. 2017.0 (2020), Iss. 030r1
https://doi.org/10.17016/feds.2017.030r1 [Citations: 3]
Abstract
The prevailing view in the literature is that, in the long run, an increase in the level of interest rates will impact positively on banks' net interest margins. Using a time series of more than 40 years for the German banking system, we confirm this effect (the net interest margin increases by 7 basis points for every 100 basis point increase in the interest rate level). What is more, we show that the opposite effect exists in the short run. In addition, we analyze the consequences of the low-interest-rate environment and find that banks' interest margins on retail deposits, especially term deposits, have declined by up to 97 basis points.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Ramona Busch / Christoph Memmel: Banks’ Net Interest Margin and the Level of Interest Rates | 1 |