Table 5 (follows)
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 1996-99. t - statistics in brackets. * Significant at 1 per cent. ** Significant at
5 per cent. *** Significant at 10 per cent.
|
(i) 1996 |
(ii) 1997 |
(iii) 1998 |
(iv) 1999 | |
|
HER |
0.22 |
0.25 |
0.39 |
** 0.46 * |
|
(1.11) |
(1.22) |
(2.26) |
(3.08) | |
|
COSPER |
-37.44 |
* -12.89 * |
-25.80 |
* -15.42 * |
|
(-10.39) |
(-3.29) |
(-7.43) |
(-7.02) | |
|
COSRAT |
-47.66 |
* -33.72 * |
-38.24 |
* -1.76 |
|
(-8.71) |
(-7.86) |
(-11.09) |
(-0.72) | |
|
COSTANT |
9.25 |
* 5.97 * |
4.76 |
* 2.38 * |
|
(33.92) |
(22.62) |
(20.36) |
(16.69) | |
|
N. observat. |
1175 |
1022 |
1056 |
1046 |
|
R2 |
0.12 |
0.06 |
0.12 |
0.05 |
|
Sum of |
438 |
335 |
259 |
184 |
|
squared | ||||
|
residuals | ||||
|
(i) |
(ii) |
(iii) |
(iv) | |
|
1996 |
1997 |
1998 |
1999 | |
|
HERF |
0.21 |
0.35 |
0.61 |
* 0.47 * |
|
(0.95) |
(1.59) |
(3.21) |
(2.83) | |
|
NBANKS |
-0.01 |
0.01 |
0.01 |
* 0.01 |
|
(-0.15) |
(1.23) |
(2.79) |
(0.08) | |
|
COSPER |
-37.47 |
* -12.48 * |
-25.44 |
* -15.40 * |
|
(-10.38) |
(-3.17) |
(-7.35) |
(-6.95) | |
|
COSRAT |
-47.65 |
* -33.75 * |
-38.64 |
* -1.77 |
|
(-8.70) |
(-7.87) |
(-11.23) |
(-0.72) | |
|
COSTANT |
9.26 |
* 5.88 * |
4.63 |
* 2.38 * |
|
(33.19) |
(21.60) |
(19.44) |
(15.66) | |
|
N. observat. |
1175 |
1022 |
1056 |
1046 |
|
R2 |
0.12 |
0.06 |
0.13 |
0.05 |
|
Sum squared |
438 |
335 |
257 |
184 |
|
residuals |
34