Publications

This article analyzes the impact of monetary policy, in particular the effect of interest rates and the slope of the interest rate curve on the banking intermediation margin. In doing so, a large panel data of 30 countries covering the period 2000-2015 is used. The results show that both variables, controlling for the influence of other interest margin determinants, have a positive and non-linear influence on the margin, which consequently shows that a normalization of the ECB’s accommodation policy would allow a recovery of the intermediation margins in the of European banking. Specifically, an increase of 100 basis points (bp) in the three-month interest rate would imply an increase in the margin of the intermediation (as a percentage of total assets) of 5 bp. For the case of the curve, the same variation implies an increase of 3 bp in interest rates.

Cruz, P., J. Fernández de Guevara and J. Maudos (2018): “Bajos tipos de interés en la eurozona: impacto sobre los márgenes y la rentabilidad de los bancos”, Papeles de Economía Española, 155, April, pp. 132-146.