Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245521 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9340
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Using data for a large sample of banks from 31 OECD countries over 1995–2018, we analyze the impact of belonging to a banking group on banks' net interest margins. Our results confirm a positive relationship between interest rates and interest margins, which is stronger in a low-interest rate environment. For banks belonging to an international banking group, we find that interest margins are less sensitive to the local interest rate. Our results show that banks belonging to an international group are sensitive to the interest rate prevailing in the group's headquarter, but only in a low interest rate environment.
Subjects: 
bank profitability
monetary policy transmission
net interest margin
low interest rates
banking groups
JEL: 
E43
E52
G21
Document Type: 
Working Paper
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