Table 9
DETERMINANTS OF CURRENT ACCOUNTS’ INTEREST RATES
CROSS-SECTIONS (OLS), 1990-96
Dependent variable: banks’ rates on current accounts in each province.
Independent variables: Herfindahl index for current accounts’ 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 1990-96. 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 |
(vii) 1996 | |||||||
|
HER |
-0.81 |
** |
-0.56 |
*** |
-0.60 |
0.02 |
-0.42 |
-0.24 |
0.08 | ||||
|
(-2.44) |
(-1.81) |
(-1.42) |
(0.06) |
(-1.46) |
(-0.76) |
(0.30) | |||||||
|
COSPER |
-1.55 |
-1.05 |
-33.83 |
* |
-15.08 |
* |
-31.08 |
* |
-11.03 |
* |
-33.10 | ||
|
(-0.20) |
(-0.15) |
(-3.94) |
(-5.89) |
(-7.13) |
(-2.29) |
(-8.12) | |||||||
|
COSRAT |
7.05 |
*** |
23.16 |
** |
59.86 |
* |
45.04 |
* |
36.87 |
* |
53.31 |
* |
9.33 |
|
(1.86) |
(6.87) |
(12.52) |
(12.68) |
10.22 |
(13.70) |
(2.26) | |||||||
|
COSTANT |
7.02 |
* |
6.47 |
* |
7.62 |
* |
5.07 |
* |
5.63 |
* |
5.01 |
* |
6.44 |
|
(24.86) |
(20.81) |
(17.32) |
(32.37) |
(24.09) |
(18.75) |
(23.20) | |||||||
|
N. observat. |
1002 |
1071 |
1203 |
1214 |
1236 |
1271 |
1240 | ||||||
|
R2 |
0.01 |
0.04 |
0.12 |
0.12 |
0.09 |
0.13 |
0.05 | ||||||
|
Sum squared |
724.10 |
681.35 |
1650.21 |
824.40 |
783.32 |
988.92 |
636.63 | ||||||
|
residuals | |||||||||||||
|
(i) |
(ii) |
(iii) |
(iv) |
(v) |
(vi) |
(vii) | |||||||
|
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 | |||||||
|
HERF |
0.21 |
0.33 |
0.70 |
0.86 |
* |
0.66 |
** |
0.89 |
* |
1.00 | |||
|
(0.58) |
(0.97) |
(1.50) |
(2.62) |
(2.10) |
(2.62) |
(3.48) | |||||||
|
NBANKS |
0.009 |
* |
0.007 |
* |
0.01 |
* |
0.008 |
* |
0.01 |
* |
0.01 |
* |
0.01 |
|
(6.25) |
(5.59) |
(6.49) |
(5.76) |
(7.70) |
(7.60) |
(7.73) | |||||||
|
COSPER |
-3.55 |
-1.96 |
-33.06 |
* |
-13.96 |
* |
-29.02 |
* |
-9.18 |
*** |
-31.19 | ||
|
(-0.47) |
(-0.29) |
(-3.91) |
(-5.50) |
(-6.80) |
(-1.95) |
(-7.81) | |||||||
|
COSRAT |
6.94 |
*** |
22.51 |
* |
57.99 |
* |
44.53 |
* |
36.15 |
* |
51.54 |
* |
7.29 |
|
(1.86) |
(6.77) |
(12.31) |
(12.70) |
(10.25) |
(13.51) |
(1.80) | |||||||
|
COSTANT |
6.69 |
* |
6.16 |
* |
7.07 |
* |
4.66 |
* |
5.06 |
* |
4.43 |
* |
5.95 |
|
(23.72) |
(19.81) |
(16.04) |
(27.47) |
(21.11) |
(16.32) |
(21.38) | |||||||
|
N. observat. |
1002 |
1071 |
1203 |
1214 |
1236 |
1271 |
1240 | ||||||
|
R2 |
0.04 |
0.07 |
0.15 |
0.14 |
0.13 |
0.17 |
0.09 | ||||||
|
Sum squared |
696.75 |
661.90 |
1594.06 |
802.36 |
747.29 |
945.70 |
607.21 | ||||||
|
residuals | |||||||||||||
38