Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector

Detalhes bibliográficos
Autor(a) principal: Valente, José
Data de Publicação: 2023
Outros Autores: Augusto, Mário, Murteira, José Maria Ruas
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10316/109521
https://doi.org/10.1016/j.iref.2023.10.025
Resumo: The empirical literature on the determinants of banking spreads has considered banks as pro-viders of one single product. According to this approach, the study of the effect of bank spreads determinants has assumed that this effect is uniform across the different types of loans offered by banks. The present study assesses the hypothesis that banking spreads attrib-utes have a differentiated impact on spreads, according to the loan category. To this end, we adopt a dynamic model, estimated through System GMM on the basis of a dataset of interest spreads charged on three categories of personal loans in Brazil. Our results support the hy-pothesis of differentiated impacts according to loan category, and are corroborated by a ro-bustness check, carried out through Difference GMM estimation of the adopted model. Over-all, these findings also suggest that regulators should observe the composition of banks’ loans portfolios when designing and implementing policies aiming at banking spread reduction.
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spelling Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sectorBanking spread Determinants Personal loans Financial sectorThe empirical literature on the determinants of banking spreads has considered banks as pro-viders of one single product. According to this approach, the study of the effect of bank spreads determinants has assumed that this effect is uniform across the different types of loans offered by banks. The present study assesses the hypothesis that banking spreads attrib-utes have a differentiated impact on spreads, according to the loan category. To this end, we adopt a dynamic model, estimated through System GMM on the basis of a dataset of interest spreads charged on three categories of personal loans in Brazil. Our results support the hy-pothesis of differentiated impacts according to loan category, and are corroborated by a ro-bustness check, carried out through Difference GMM estimation of the adopted model. Over-all, these findings also suggest that regulators should observe the composition of banks’ loans portfolios when designing and implementing policies aiming at banking spread reduction.International Review of Economics & Finance2023-10-17info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10316/109521http://hdl.handle.net/10316/109521https://doi.org/10.1016/j.iref.2023.10.025eng10590560https://www.sciencedirect.com/science/article/pii/S1059056023003957?via%3DihubValente, JoséAugusto, MárioMurteira, José Maria Ruasinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-10-18T15:35:00Zoai:estudogeral.uc.pt:10316/109521Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T21:25:42.274068Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
title Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
spellingShingle Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
Valente, José
Banking spread Determinants Personal loans Financial sector
title_short Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
title_full Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
title_fullStr Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
title_full_unstemmed Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
title_sort Differentiated impact of spread determinants by personal loan category: Evidence from the Brazilian banking sector
author Valente, José
author_facet Valente, José
Augusto, Mário
Murteira, José Maria Ruas
author_role author
author2 Augusto, Mário
Murteira, José Maria Ruas
author2_role author
author
dc.contributor.author.fl_str_mv Valente, José
Augusto, Mário
Murteira, José Maria Ruas
dc.subject.por.fl_str_mv Banking spread Determinants Personal loans Financial sector
topic Banking spread Determinants Personal loans Financial sector
description The empirical literature on the determinants of banking spreads has considered banks as pro-viders of one single product. According to this approach, the study of the effect of bank spreads determinants has assumed that this effect is uniform across the different types of loans offered by banks. The present study assesses the hypothesis that banking spreads attrib-utes have a differentiated impact on spreads, according to the loan category. To this end, we adopt a dynamic model, estimated through System GMM on the basis of a dataset of interest spreads charged on three categories of personal loans in Brazil. Our results support the hy-pothesis of differentiated impacts according to loan category, and are corroborated by a ro-bustness check, carried out through Difference GMM estimation of the adopted model. Over-all, these findings also suggest that regulators should observe the composition of banks’ loans portfolios when designing and implementing policies aiming at banking spread reduction.
publishDate 2023
dc.date.none.fl_str_mv 2023-10-17
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10316/109521
http://hdl.handle.net/10316/109521
https://doi.org/10.1016/j.iref.2023.10.025
url http://hdl.handle.net/10316/109521
https://doi.org/10.1016/j.iref.2023.10.025
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10590560
https://www.sciencedirect.com/science/article/pii/S1059056023003957?via%3Dihub
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dc.publisher.none.fl_str_mv International Review of Economics & Finance
publisher.none.fl_str_mv International Review of Economics & Finance
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
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