Bank efficiency and interest rate pass-through: Evidence from Czech loan products
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F16%3A10327543" target="_blank" >RIV/00216208:11230/16:10327543 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1016/j.econmod.2016.01.004" target="_blank" >http://dx.doi.org/10.1016/j.econmod.2016.01.004</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.econmod.2016.01.004" target="_blank" >10.1016/j.econmod.2016.01.004</a>
Alternative languages
Result language
angličtina
Original language name
Bank efficiency and interest rate pass-through: Evidence from Czech loan products
Original language description
An important component of monetary policy transmission is the pass-through from financial market interest rates, directly influenced or targeted by central banks, to the rates that banks charge firms and households. Yet the available evidence on the strength and speed of the pass-through is mixed. We examine the pass-through mechanism using a unique data set of Czech loan and deposit products and focus on bank-level determinants of pricing policies, especially cost efficiency, which we estimate employing both stochastic frontier and data envelopment analysis. Our main results are threefold: First, the long-term pass-through was close to complete for most products before the financial crisis, but has weakened considerably afterward. Second, banks that provide high rates for deposits usually charge high loan markups. Third, cost-efficient banks tend to smooth loan rates for their clients. (C) 2016 Elsevier B.V.
Czech name
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
<a href="/en/project/GBP402%2F12%2FG097" target="_blank" >GBP402/12/G097: DYME-Dynamic Models in Economics</a><br>
Continuities
P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Economic Modelling
ISSN
0264-9993
e-ISSN
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Volume of the periodical
54
Issue of the periodical within the volume
April 2016
Country of publishing house
NL - THE KINGDOM OF THE NETHERLANDS
Number of pages
17
Pages from-to
153-169
UT code for WoS article
000374195900012
EID of the result in the Scopus database
2-s2.0-84955306704