Determinants of banking spread in Brazil and the effects of the Basel III Agreement
DOI:
https://doi.org/10.11606/1980-5330/ea173229Keywords:
spread, Basel III, credit, banksAbstract
This article studies the determinants of Brazilian ex-post bank spread, in particular, we seek evidence of the Basel III agreement implementation effects on Brazilian spread. Based on a model presented by Ho & Saunders (1981), we estimated a panel model with data of 73 commercial banks operating in Brazil from 2009:2 to 2016:2. The results showed evidence of a positive impact on ex-post bank spread of the new capital requirements of the Basel III agreement in Brazil. Other variables that have been identified as determinants of the spread are: administrative expenses, taxation, banks’ net profit, unemployment and the Selic rate.
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