Can Good Governance Lower Financial Intermediation Costs?
IMF Working Papers, December 11, 2018
Source details
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- Can Good Governance Lower Financial Intermediation Costs?
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Bibliographic details
- Authors: Mariusz Jarmuzek, Tonny Lybek
- Published: December 11, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484385678.001
Core argument and scope
- The paper argues that better governance practices can reduce the costs, risks and uncertainty of financial intermediation.
- Sample covers high-, middle- and low-income countries before and after the global financial crisis (GFC).
Key empirical findings
- Net interest margins of banks are lower when various governance indicators are better.
- More cross-border lending appears conducive to lower intermediation costs.
- The level of capital market development is not significant for intermediation costs.
- The GFC seems not to have had a strong impact on intermediation costs except via credit risk.
- The paper estimates the size of potential gains from improved governance (specific estimates presented in the full paper).
Subjects and keywords (as stated)
- Subjects: Bank credit, Banking, Capital markets, Competition, Credit risk, Financial crises, Financial markets, Financial regulation and supervision, Global financial crisis of 2008-2009, Inflation, Prices
- Keywords: bank characteristic, bank-dealership framework, bank-dealership model, banks capital, Capital markets, Competition, corruption, Credit risk, financial intermediation costs, Global, Global financial crisis of 2008-2009, governance, Inflation, intermediation cost, transaction size, WP
Research format and availability
- IMF Working Paper No. 2018/279, 43 pages.
- DOI: https://doi.org/10.5089/9781484385678.001
Mariusz Jarmuzek and Tonny Lybek; December 11, 2018; IMF Working Paper No. 2018/279.
Content in this bundle
- Can Good Governance Lower Financial Intermediation Costs?, WP/18/279, December 2018