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What Drives the Distributional Dynamics of Client Interest Rates on Consumer Loans in the Czech Republic?

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F19%3A10395658" target="_blank" >RIV/00216208:11230/19:10395658 - isvavai.cz</a>

  • Result on the web

    <a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=7XyOdtv5HT" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=7XyOdtv5HT</a>

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    What Drives the Distributional Dynamics of Client Interest Rates on Consumer Loans in the Czech Republic?

  • Original language description

    We study determinants of the bank-level distributional dynamics of client interest rates on consumer loans in the Czech Republic in the recent period 2014-2019 when banks started to provide new consumer loans at very low interest rates. We build on the relevant literature in terms of the selected explanatory variables as well as the methodological approach and use regulatory data that enable us to work with the mean, median and the mode of the distribution of client interest rates on consumer loans. We show that development of the market rate, the NPL ratio as well as the unemployment rate facilitated the observed distributional dynamics. Further, using a variety of variables on market competition/market concentration, our analysis reveals that the role of this determinant is limited at best. Our results, especially regarding the pass-through from market rates to consumer loan rates, are mostly in line with the international literature but are novel in the Czech context.

  • Czech name

  • Czech description

Classification

  • Type

    J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database

  • CEP classification

  • OECD FORD branch

    50201 - Economic Theory

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2019

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Name of the periodical

    Finance a úvěr

  • ISSN

    0015-1920

  • e-ISSN

  • Volume of the periodical

    69

  • Issue of the periodical within the volume

    3

  • Country of publishing house

    CZ - CZECH REPUBLIC

  • Number of pages

    23

  • Pages from-to

    275-297

  • UT code for WoS article

    000482908300003

  • EID of the result in the Scopus database

    2-s2.0-85069880206