The Monetary Policy Regime and Banking Spreads in Barbados

 
Author/Editor: Samuel, Wendell A. ; Valderrama, Laura
 
Publication Date: September 01, 2006
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: The paper analyzes the determinants of banking spreads in Barbados, with a view to identifying the role of the monetary policy regime in explaining high spreads. The paper finds that interest rate spreads for Barbados are higher than would be suggested by its macroeconomic performance. Banking concentration and bank-specific variables, including bank size and provisions for nonperforming loans, do not have an important role in explaining variations in bank spreads. Rather, it appears that monetary policy variables, such as reserve requirements and capital controls, are the most important determinants of spreads.
 
Series: Working Paper No. 06/211
Subject(s): Interest rates | Barbados | Monetary policy | Economic conditions

Author's Keyword(s): Interest rate spreads | monetary policy regime
 
English
Publication Date: September 01, 2006
ISBN/ISSN: 0 / 1934-7073 Format: Paper
Stock No: WPIEA2006211 Pages: 24
Price:
US$18.00 (Academic Rate:
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