The Impact of Banking Sector Reform in a Transition Economy : Evidence from Kyrgyzstan
We examine the impact of financial sector reform on interest rate levels and spreads using Kyrgyz bank-level data from 1998 to 2005. We find that, in addition to macroeconomic stabilization, structural reforms to the banking sector significantly contributed to lower interest rates. In particular, our results suggest that foreign bank entry and regulatory efforts to increase average bank size were important in reducing deposit rates. In contrast, we find little evidence that banking sector reform or macroeconomic stabilization has impacted interest rate spreads.
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| Main Authors: | , , , |
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| Format: | Journal Article biblioteca |
| Language: | EN |
| Published: |
2009
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| Subjects: | Interest Rates: Determination, Term Structure, and Effects E430, Banks, Other Depository Institutions, Micro Finance Institutions, Mortgages G210, Financial Institutions and Services: Government Policy and Regulation G280, Economic Development: Financial Markets, Saving and Capital Investment, Corporate Finance and Governance O160, Socialist Systems and Transitional Economies: National Income, Product, and Expenditure, Money, Inflation P240, Socialist Institutions and Their Transitions: Financial Economics P340, |
| Online Access: | http://hdl.handle.net/10986/5462 |
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