Date of Award

1-1-2010

Thesis Type

Masters

Document Type

Thesis

Divisions

Faculty of Business and Economics (formally known as Faculty of Business and Accountancy)

Institution

Universiti Malaya

Abstract

This paper identifies the determinants of bank profits and net interest margins using bank level data, macroeconomic indicators and concentration ratio for ten countries in the East Asia and Latin America economies for the period of 2003–2008. A balanced panel of 167 banks operating in Argentina, Brazil, Colombia, Korea, Indonesia, Malaysia, Mexico, Thailand, Peru and Venezuela is used for this study. Of the 167 banks, 78 banks represent East Asia, while the balance 89 banks, Latin America. For purpose of this study, we first examine the determinants of bank profits and net interest margins based on the full sample of 167 banks, and then on two sub-groups, namely, East Asia (78 banks) and Latin America (89 banks). Firstly, the results show that for these two regions as a group, and as sub-groups, internal factors or bank characteristics, rather than external factors explain a substantial part of within-country variation in bank interest margins and profits. Secondly, there are determinants of bank profits and interest rate margins in East Asia and Latin America that are common to both regions, and determinants which are unique to a particular region only. Finally, external determinants are not statistically significant to the interest margins of banks operating in East Asia and Latin America.

Comments

Dissertation (M.A) -- Faculty of Business & Economics, Universiti Malaya, 2010.

Additional Information

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Creative Commons License

Creative Commons Attribution-Noncommercial-Share Alike 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 License.

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