Financial access and interest rate spread: An international assessment

Claudio de Moraes; Juan Camilo Galvis-Ciro; Micheli Gargalhone

doi:10.1016/j.jeconbus.2020.105958

Financial access and interest rate spread: An international assessment

Claudio de Moraes
, Juan Camilo Galvis-Ciro
, Micheli Gargalhone

Research output: Contribution to scientific journal › Article in an indexed scientific journal › peer-review

14 Scopus citations

Abstract

The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period between 2006 and 2015, the results of this study indicate that the bank interest rate spread is lower in countries with greater financial access. However, this effect is decreasing, indicating a limit to the effect on the spread.

Original language	English
Article number	105958
Journal	Journal of Economics and Business
Volume	114
DOIs	https://doi.org/10.1016/j.jeconbus.2020.105958
State	Published - 1 Mar 2021

Bibliographical note

Publisher Copyright:
© 2020 Elsevier Inc.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Financial access
Interest rate spread
Panel data

Types Minciencias

Artículos de investigación con calidad A2 / Q2

Access to Document

10.1016/j.jeconbus.2020.105958

Cite this

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title = "Financial access and interest rate spread: An international assessment",

abstract = "The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period between 2006 and 2015, the results of this study indicate that the bank interest rate spread is lower in countries with greater financial access. However, this effect is decreasing, indicating a limit to the effect on the spread.",

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T2 - An international assessment

AU - de Moraes, Claudio

AU - Galvis-Ciro, Juan Camilo

AU - Gargalhone, Micheli

PY - 2021/3/1

Y1 - 2021/3/1

N2 - The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period between 2006 and 2015, the results of this study indicate that the bank interest rate spread is lower in countries with greater financial access. However, this effect is decreasing, indicating a limit to the effect on the spread.

AB - The present study evaluates the hypothesis that countries where banks expand financial access through branches and ATM networks have smaller interest rate spreads. To do so, the financial access index produced by the International Monetary Fund was used to capture financial access through bank branches and ATMs (automated teller machines). Through a data panel analysis of 68 countries during the period between 2006 and 2015, the results of this study indicate that the bank interest rate spread is lower in countries with greater financial access. However, this effect is decreasing, indicating a limit to the effect on the spread.

KW - Financial access

KW - Interest rate spread

KW - Panel data

UR - https://www.scopus.com/pages/publications/85097453798

U2 - 10.1016/j.jeconbus.2020.105958

DO - 10.1016/j.jeconbus.2020.105958

M3 - Artículo en revista científica indexada

AN - SCOPUS:85097453798

SN - 0148-6195

VL - 114

JO - Journal of Economics and Business

JF - Journal of Economics and Business

M1 - 105958

ER -

Financial access and interest rate spread: An international assessment

Abstract

Bibliographical note

UN SDGs

Keywords

Types Minciencias

Access to Document

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Cite this