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Deposit Insurance, Institutions and Bank Interest Rates

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Deposit Insurance, Institutions and Bank Interest Rates

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The structure of the paper is as follows. Section 2 discusses the literature on both measuring competition and the bank interest rate pass-through. Section 3 describes the Boone indicator of competition and Section 4 the employed interest rate pass-through model of the error-correction type and the applied panel unit root and cointegration tests. Section 5 presents the various data sets used. The results on the various tests and estimates of the spread model and the error correction model equations are shown in Section 6. Finally, Section 7 summarises and concludes....

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