Bank behaviour in small open economies

Author(s): Worrell, DeLisle (1996)

Created 22 Jul, 1996
Categories Working Papers
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This paper provides evidence on economies of scale and scope, the exercise of monopoly power, market segmentation and bank efficiency. There remain many puzzles about what motivates bank behaviour. In small open economies such as the Caribbean, there are wide spreads between deposit and loan interest rates, interest rates that tend to be sticky and banks often hold non-earning assets in excess of the requirements of monetary authorities.

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