Deposit Competition, Interbank Market, and Bank Profit
| dc.contributor.author | Jiang, Bo | en |
| dc.contributor.author | Tzavellas, Hector | en |
| dc.contributor.author | Yang, Xiaoying | en |
| dc.date.accessioned | 2022-04-22T12:28:59Z | en |
| dc.date.available | 2022-04-22T12:28:59Z | en |
| dc.date.issued | 2022-04-20 | en |
| dc.date.updated | 2022-04-21T21:03:39Z | en |
| dc.description.abstract | In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document two stylized facts: the net interbank funding ratio is negatively correlated with net interest margin (NIM), as well as with the cost-to-income ratio (CIR). To rationalize these two facts, we embed the interbank market into a BLP model framework. The model is calibrated using Chinese listed banks’ data. A counterfactual experiment reveals that shutting down the interbank market will lead to a decline in NIM and bank profits. Our results indicate that the interbank market can facilitate specialization and reduce the intensity of deposit competition. | en |
| dc.description.version | Published version | en |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.citation | Jiang, B.; Tzavellas, H.; Yang, X. Deposit Competition, Interbank Market, and Bank Profit. J. Risk Financial Manag. 2022, 15, 194. | en |
| dc.identifier.doi | https://doi.org/10.3390/jrfm15050194 | en |
| dc.identifier.uri | http://hdl.handle.net/10919/109730 | en |
| dc.language.iso | en | en |
| dc.publisher | MDPI | en |
| dc.rights | Creative Commons Attribution 4.0 International | en |
| dc.rights.uri | http://creativecommons.org/licenses/by/4.0/ | en |
| dc.subject | deposit competition | en |
| dc.subject | interbank market | en |
| dc.subject | structural estimation | en |
| dc.subject | BLP | en |
| dc.subject | Bank Profitability | en |
| dc.title | Deposit Competition, Interbank Market, and Bank Profit | en |
| dc.title.serial | Journal of Risk and Financial Management | en |
| dc.type | Article - Refereed | en |
| dc.type.dcmitype | Text | en |