Interest Rate Spreads in the Eastern Caribbean

Interest Rate Spreads in the Eastern Caribbean
ISBN-10
1451847912
ISBN-13
9781451847918
Category
Business & Economics
Pages
40
Language
English
Published
1998-04-01
Publisher
International Monetary Fund
Author
Mrs.Ruby Randall

Description

This paper examines interest rate spreads in the Eastern Caribbean and seeks to explain why they are persistently high by comparison with other low-inflation countries. The paper concludes that operating costs appear to be a key determinant of observed interest rate spreads, giving rise to the policy recommendation that efforts to expand the market size of efficient banks might help pave the way for greater efficiency.

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