TY - JOUR
T1 - The determinants of net interest margins of commercial banks in Mainland China
AU - Zhou, Kaiguo
AU - Wong, Michael C. S.
PY - 2008/9
Y1 - 2008/9
N2 - This paper studies empirically the determinants of Chinese commercial banks' net interest margins from 1996 to 2003. It applies an extension to the Ho and Saunders (1981) model to identify the elements affecting net interest margins. The results indicate that the determinants of net interest margins in the Chinese market include market competition structure, average operating costs, degree of risk aversion, transaction size, implicit interest payments, opportunity cost of reserve, and management efficiency. Copyright © 2008 M.E. Sharpe, Inc. All rights reserved.
AB - This paper studies empirically the determinants of Chinese commercial banks' net interest margins from 1996 to 2003. It applies an extension to the Ho and Saunders (1981) model to identify the elements affecting net interest margins. The results indicate that the determinants of net interest margins in the Chinese market include market competition structure, average operating costs, degree of risk aversion, transaction size, implicit interest payments, opportunity cost of reserve, and management efficiency. Copyright © 2008 M.E. Sharpe, Inc. All rights reserved.
KW - Commercial banks
KW - Determinants
KW - Net interest margin
UR - http://www.scopus.com/inward/record.url?scp=57849131827&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-57849131827&origin=recordpage
U2 - 10.2753/REE1540-496X440503
DO - 10.2753/REE1540-496X440503
M3 - RGC 21 - Publication in refereed journal
SN - 1540-496X
VL - 44
SP - 41
EP - 53
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 5
ER -