Table 5
DETERMINANTS OF DEPOSIT INTEREST RATES
CROSS-SECTIONS (OLS), 1990-99
Dependent variable: banks’ deposit rate in each province.
Independent variables: Herfindahl index for deposit market shares (HER); staff costs per employee (COSPER);
costs/total assets (COSRAT); number of banks per province (NBANKS). Variables refer to end-of-year data, for
the period 1990-95. t - statistics in brackets. * Significant at 1 per cent. ** Significant at 5 per cent. *** Significant
at 10 per cent.
|
(i) 1990 |
(ii) |
(iii) 1992 |
(iv) 1993 |
(v) 1994 |
(vi) 1995 | |
|
HER |
0.14 |
0.23 |
-0.21 |
0.35 |
-0.07 |
-0.11 |
|
(0.54) |
(0.98) |
(-0.6) |
(1.44) |
(-0.31) |
(-0.43) | |
|
COSPER |
23.31 * |
25.77 * |
43.92 |
* -4.79 *** |
-20.35 |
* -6.23 |
|
(2.81) |
(3.82) |
(5.12) |
(-1.72) |
(-4.95) |
(-1.31) | |
|
COSRAT |
-28.75 * |
-10.75 ** |
1.68 |
16.77 * |
-16.32 |
* 13.72 * |
|
(-5.25) |
(-2.11) |
(0.27) |
(3.03) |
(-3.70) |
(2.74) | |
|
COSTANT |
7.62 * |
6.98 * |
6.60 |
* 6.33 * |
7.45 |
* 6.98 * |
|
(29.44) |
(26.17) |
(15.69) |
(35.11) |
(34.11) |
(28.20) | |
|
N. observat. |
804 |
928 |
1088 |
1115 |
1150 |
1177 |
|
R2 |
0,03 |
0,02 |
0,02 |
0,01 |
0,05 |
0,01 |
|
Sum squared |
404 |
388 |
1260 |
646 |
576 |
740 |
|
residuals | ||||||
|
(i) |
(ii) |
(iii) |
(iv) |
(v) |
(vi) | |
|
1990 |
1991 |
1992 |
1993 |
1994 |
1995 | |
|
HERF |
0.42 |
0.40 |
0.16 |
0.33 |
-0.04 |
0.36 |
|
(1.49) |
(1.62) |
(0.44) |
(1.28) |
(-1.17) |
(1.25) | |
|
NBANKS |
0.01 * |
0.01 ** |
0.01 |
* -0.01 |
0.01 |
0.01 * |
|
(2.69) |
(2.02) |
(3.63) |
(-0.3) |
(0.37) |
(3.68) | |
|
COSPER |
21.46 ** |
24.66 * |
43.13 |
* -4.80 ** |
-20.33 * |
-5.60 |
|
* | ||||||
|
(2.59) |
(3.65) |
(5.05) |
(-1.72) |
(-4.94) |
(-1.18) | |
|
COSRAT |
-27.79 * |
-10.14 ** |
1.26 |
16.70 * |
-16.27 * |
13.13 * |
|
(-5.08) |
(-1.99) |
(0.20) |
(3.01) |
(-3.69) |
(2.63) | |
|
COSTANT |
7.47 * |
6.88 * |
6.35 |
* 6.35 * |
7.43 * |
6.72 * |
|
(28.37) |
(25.48) |
(14.97) |
(32.94) |
(32.56) |
(26.25) | |
|
N. observat. |
804 |
928 |
1088 |
1115 |
1150 |
1177 |
|
R2 |
0.04 |
0.02 |
0.03 |
0.01 |
0.05 |
0.01 |
|
Sum squared |
400 |
386 |
1245 |
646 |
576 |
732 |
|
residuals | ||||||
|
(follows) |
33