Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/113187
Authors: 
Busch, Ramona
Memmel, Christoph
Year of Publication: 
2015
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2015: Ökonomische Entwicklung - Theorie und Politik - Session: Finance and Banks I D09-V1
Abstract: 
An increase in the level of interest rates is said to have a negative impact on banks net interest margins in the short run. Using a time series of more than 40 years for the German banking system, we show that the opposite effect exists in the long run, where an increase in the level of interest rates by 100 basis points leads to an estimated increase of 7 basis points in the banks net interest margin. In addition, we analyze the consequences of the low-interest rate environment and find that banks interest margins for retail deposits, especially for term deposits, have declined by up to 97 basis points.
JEL: 
G21
C32
E43
Document Type: 
Conference Paper

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