Determinants of Bank Interest Margins in Russia: Does Bank Ownership Matter?

Posted: 13 Mar 2012  

Zuzana Fungáčová

Bank of Finland - Institute for Economies in Transition (BOFIT); Charles University in Prague - Department of Economics

Tigran Poghosyan

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: March 12, 2012

Abstract

This paper analyzes interest margin determinants in the Russian banking sector with a particular emphasis on the bank ownership structure. Using unique bank-level data covering Russia’s entire banking sector for the 1999-2007 period, we find that the impact of a number of commonly used determinants such as market structure, credit risk, liquidity risk and size of operations differs across state-controlled, domestic-private and foreign-owned banks. At the same time, the influence of operational costs and risk aversion is homogeneous across ownership groups. The results overall suggest that the form of bank ownership needs to be considered when analyzing interest margin determinants.

Keywords: Bank interest margins, Financial intermediation, Russia

JEL Classification: G21, P34

Suggested Citation

Fungáčová, Zuzana and Poghosyan, Tigran, Determinants of Bank Interest Margins in Russia: Does Bank Ownership Matter? (March 12, 2012). Economic Systems, Vol. 35, No. 4, 2011. Available at SSRN: https://ssrn.com/abstract=2020356

Zuzana Fungacova (Contact Author)

Bank of Finland - Institute for Economies in Transition (BOFIT) ( email )

Snellmaninaukio
PO Box 160
Helsinki 00101
Finland

HOME PAGE: http://www.bof.fi/bofit_en/index.htm

Charles University in Prague - Department of Economics ( email )

Opletalova 26
Prague, 11000
Czech Republic

Tigran Poghosyan

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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