HOW DO BANKS SET INTEREST RATES? NATIONAL BUREAU OF ECONOMIC RESEARCH pptx

... WORKING PAPER SERIES HOW DO BANKS SET INTEREST RATES? Leonardo GambacortaWorking Paper 10295http://www.nber.org/papers/w10295 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts AvenueCambridge, ... Opiela(2000) and Ehrmann et al. (2001). How Do Banks Set Interest Rates? Leonardo GambacortaNBER Working Paper No. 10295February 2004JEL No. E44, E51, E52ABSTRACTThe aim of this paper is to study cross-sectional ... Characteristics of the datasetThe dataset includes 73 banks that represent more than 70 per cent of total Italianbanking system in term of loans over the whole sample period. Since information on interest rates...

... those of the author(s) and do notnecessarily reflect the views of the National Bureau of Economic Research. ©2006 by John D. Burger and Francis E. Warnock. All rights reserved. Short sections of ... 12552http://www.nber.org/papers/w12552 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts AvenueCambridge, MA 02138September 2006Burger is Associate Professor at the Sellinger School of Business and Management ... component of BIS Table 16A (Domestic Debt Securities). Local-currency-denominated debt is the sum of domestic long-term debt (from Table 16A) and the local currency portion of Table 14B. Domestic...

... Traditional Understanding of How They Do That”The traditional account of how central banks go about setting a short-term interest rate—the staple of generations of “money and banking” textbooks—revolves ... as of the time of writing the ECB has never changed its 2 percent reserve requirement (northe set of deposits to which it applies).16Implementation of Monetary Policy: How Do Central Banks Set ... traditional story of how central banks set interest rates as illustrated in Figure 5. The interest rate variable in most of these analyses is not the level of the central bank’s policy interest rate,...

... variance of the loan/depositportfolio. However, corporate loan dollarization is also of interest. In fact,as our data set shows, it is sizeable and generally higher than household loandollarization. ... are those of the authors and do not necessarily represent those of the ECB.2 School of Economics, Mathematics and Statistics, Birkbeck College, University of London, Malet Street, London, WC1E ... parametrization of the model. More precisely, they depend on the amount of funds compared to deposits17, and on the degree of monopoly power of banks 18compared with how much banks care about...

... assumption. But this does not take into account the impact of deregulation of interest on savings accounts on the interest paid on short-term xed deposits Should higher interest be paid on ... an interactive session on the issue of Deregulation of the Savings Bank interest rate on the occasion of the M.R. Pai Memorial Award. While the rate of interest on term deposits was deregulated ... the wisdom and maturity of bankers, I would not recommend any further regulation of charges over what exists at present. Here, I would share a quotation of the Governor of the Bank of Canada,...

... namely theamount of funds demanded and supplied and the level of interest rates. BIBLIOGRAPHY The ABCs of Figuring Interest Federal Reserve Bank of Chicago, 1984. The Arithmetic of Interest RatesFederal ... rise and fall of interest rates, in turn, affect the condition of the economy the Gross National Product, the employment of resources, the level of income and the general level of prices. Changes ... for banks- tolend, will cause interest rates to rise. With higher costs of credit, borrowing will tend to slow,moderating the rate of spending and the tempo of the economy.During an economic downturn,...

... discounted a thousand of them.141 The average note matured in a 134 United States, Office of the Comptroller of the Currency, Individual Statements of National Banks, Massachusetts (1929), 80-84. ... Between the Banks in the City of New York (New York, 1805); A Citizen of New York, Remarks on that Part of the Speech of His Excellency the Governor to the Legislature of the State of New York ... Governance and the Success of U.S. Community Banks, 1790-2010: Mutual Savings Banks, Local Commercial Banks, and the Merchants (National) Bank of New Bedford, Massachusetts Robert E. Wright...

... tointerview.Consistency of condom use for diseaseprevention—The consistency of condomuse for disease prevention (variablename USECONPR) was asked of aspecific subset of respondents who everused condoms with ... and how she paid for it.She was shown a card that listedresponse options for type of providerand method of payment. For type of provider, the options listed were clinic,private doctor’s office ... 19ofinterviewbecausesheorherpartnerwantedhertobecomepregnantassoonaspossible.Postpartum—Awomanwasclassifiedas‘‘postpartum’’ifshereportedthatshewasnotcurrentlyusingamethod,wasnottryingtobecomepregnant,andherlastpregnancyhadterminatedlessthanorequalto2monthsbeforethetimeofinterview.Othernonusers—Womenwhoreportedthattheywereusingnocontraceptivemethodsforanyreasoninthemonthofinterviewandcouldnotbeotherwiseclassifiedwereconsidered‘‘nonusers.’’Includedarewomenwhoneverhad(voluntary)intercoursesincetheirfirstmenstrualperiod;womenwhohadintercoursebutnotinthe3monthsbeforetheinterview;orwomenwhohadintercourseatsometimeinthe3monthsbeforetheinterviewbutwerenotusingamethodinthemonthofinterview.+Contraceptors:Awomanwhoreportedusingoneormorecontraceptivemethodsforanyreasoninthemonthofinterviewwasclassifiedbythemosteffectivemethodsheused.Thepriorityorderofuse-effectiveness,frommosteffectivemethodtoleasteffective,was:female(contraceptive)sterilization,male(contraceptive)sterilization,Norplantimplant,Depo-Proverainjectable,pill,morning-afterpill,IUD,diaphragm(withorwithoutjellyorcream),malecondom,femalecondom(vaginalpouch),foam,cervicalcap,Today(TM)sponge,suppository,jellyorcream,periodicabstinence,withdrawal,andothermethods.Intables41and42,mostofthecategory‘‘othermethods’’iscomprisedofthespermicidemethods—includingfoam,Today(TM)sponge,suppository,andjellyorcream.(Consult1995NSFGPublicUseFileDocumentation,Appendix1,forpreciserecodespecificationsforCONSTAT1.)Douching—Allrespondentsin1995wereaskedaboutvaginaldouching:‘‘Somewomendoucheafterintercourseoratothertimes,whileotherwomendonot.Doyoudoucheregularly?’’Thepercentsanswering‘‘yes’’tothisquestionareshownintable90accordingtoraceandHispanicoriginandothercharacteristics.Educationatinterview(recode=HIEDUC)—ThismeasureofeducationalattainmentdiffersslightlyfrompreviousNSFGreportsinthatittakesintoaccountthehighestdegreereceivedaswellasthehighestgrade/yearofschoolcompleted,whereaspreviousreportsmeasurededucationonlybythenumberofyearscompleted.HIEDUCisintendedtobecomparabletothemeasureusedbytheBureauofCensusinCurrentPopulationSurveyreportsbeginningin1992(37).‘‘Yearsofschooling’’measuresofeducationcandifferfrom‘‘Highestdegree’’measuresofeducation,forexample,ifawomanhascompletedfewerthan12yearsofschoolbuthasahighschooldegree,orifawomanhascompletedmorethan12yearsbutdoesnothaveahighschooldegree.ThecategoriesofHIEDUCweredefinedasfollows:+Nohighschooldiplomaorgeneralequivalencydiploma(GED)—Thewomanreceivednohighschooldegree,GED,orcollegediploma,regardlessofthehighestgradeofschoolcompleted.+HighschooldiplomaorGED—ThehighestdegreethewomanobtainedisahighschooldiplomaorGED,andherhighestcompletedgradeofschoolis12orlower.+Somecollege,nobachelor’sdegree—ThehighestdegreethewomanobtainedisahighschooldiplomaorGED,butthehighestgradeofschoolcompletedishigherthan12orthehighestdegreeisanAssociate’sdegree.+Bachelor’sdegreeorhigher—Thewomanreportedhavingacollegeoruniversitydegreeatthebachelor’slevelorhigher,regardlessofhighestgradecompleted.Thetablesinthisreportshoweducationonlyforwomen22–44yearsofageatinterviewbecauselargepercentagesofwomen15–21arestillattendingschool.Everforcedtohaveintercourse/Ageatfirstforcedintercourse—DuringtheAudioCASI,orself-administered,portionofthesurvey,womenwereasked(eitherbyreadingthecomputerscreenorlisteningtotheheadphones):‘‘Atanytimeinyourlife,haveyoueverbeenforcedbyamantohavesexualintercourseagainstyourwill?’’Iftherespondenthadindicatedearlierintheinterviewer-administeredportionofthesurveythatherfirstintercoursewasarapeorwasnotvoluntary,shewasinsteadasked:‘‘Besidesthetimeyoutoldyourintervieweraboutearlier,haveyoueverbeenforcedbyamantohavesexualintercourseagainstyourwill?’’Ageatfirstforcedintercoursewasascertainedforthoseresponding‘‘yes’’tothefirstitemwiththequestion:‘ How oldwereyoutheveryfirsttimeyouwereforcedbyamantohavesexualintercourseagainstyourwill?’’Everhadsexualintercourseaftermenarche—Thismeasure,usedintable19,indicateswhethertherespondenthashadintercourseatallafterherfirstmenstrualperiod.Firstintercourseaftermenarcheisusedbecauseitmarksthebeginningofherexposuretothe‘‘risk’’ofpregnancy.Thismeasureiscomparabletothe‘‘everhadsexualintercourseaftermenarche’’measureusedinmanyreportsbasedonpreviouscyclesoftheNSFG.Inmostcases,thisvariableisequivalenttoSEXEVER(‘‘Hasrespondenteverhadvoluntaryintercoursesincefirstmenstrualperiod’’)exceptforahandfulofcasesinwhichthewomanhadhadintercourseonlyonceaftermenarche,andthatintercoursewasnotvoluntary.Thosecaseswerereclassifiedonthebasisoftwoothervariablesinthedatafile:(a)theHADSEXrecode,whichmeasureswhethersheeverhadintercourseatall,and(b)theMENARCHRrecode,whichspecifiesherageatfirstmenstrualperiod.Theprimaryquestiononwhichthesemeasuresarebasedis:‘‘Atanytimeinyourlife,haveyoueverhadsexualintercoursewithaman,thatis,madelove,hadsex,orgonealltheway?’’Series23,No.19[Page105Ever-use...

... supply of credit. However, economic conditions and in this case inflation was found to be directly taken into account in the determination of base lending rates by only half of the surveyed banks. ... commercial banks take into account in the determination of base lending rates. These include cost of funds, economic conditions, market conditions and political risks. The cost of funds include: ... trading of Government securities of smaller size amongst commercial banks and other market participants, and thus aid in the liquidity management of financial institutions. Limitations of the...

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