The Monetary Policy Regime and Banking Spreads in Barbados

The paper analyzes the determinants of banking spreads in Barbados, with a view to identifying the role of the monetary policy regime in explaining high spreads. The paper finds that interest rate spreads for Barbados are higher than would be suggested by its macroeconomic performance. Banking conce...

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Bibliographic Details
Main Author: Valderrama, Laura
Other Authors: Samuel, Wendell
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2006
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a The Monetary Policy Regime and Banking Spreads in Barbados  |c Laura Valderrama, Wendell Samuel 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2006 
300 |a 24 pages 
651 4 |a Barbados 
653 |a Depository Institutions 
653 |a Interest rates 
653 |a Credit 
653 |a Commercial banks 
653 |a Banks 
653 |a Finance 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a Mortgages 
653 |a Deposit rates 
653 |a Banks and Banking 
653 |a Bank credit 
653 |a Banking 
653 |a Interest Rates: Determination, Term Structure, and Effects 
653 |a Money and Monetary Policy 
653 |a Credit ratings 
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520 |a The paper analyzes the determinants of banking spreads in Barbados, with a view to identifying the role of the monetary policy regime in explaining high spreads. The paper finds that interest rate spreads for Barbados are higher than would be suggested by its macroeconomic performance. Banking concentration and bank-specific variables, including bank size and provisions for nonperforming loans, do not have an important role in explaining variations in bank spreads. Rather, it appears that monetary policy variables, such as reserve requirements and capital controls, are the most important determinants of spreads