@article{811006b7cd994c66b5815c22583816bf,
title = "Low interest rates and banks{\textquoteright} interest margins: Does belonging to a banking group matter?",
abstract = "Using data for a large sample of banks from 31 OECD countries over 1995–2018, we analyze the impact of belonging to a banking group on banks{\textquoteright} net interest margins. Our results confirm a positive relationship between interest rates and interest margins, which is stronger in a low-interest rate environment. For banks that are foreign subsidiaries of a banking group, we find that interest margins are less sensitive to the local interest rate. Our results show that such foreign subsidiaries are also sensitive to the interest rate prevailing in the group's headquarters.",
keywords = "Bank profitability, Banking groups, Low interest rates, Monetary policy transmission, Net interest margin",
author = "Isabel Argimon and Danton, {Jayson M.} and {de Haan}, Jakob and Javier Rodriguez-Martin and Maria Rodriguez-Moreno",
note = "Funding Information: We thank two reviewers, Germ{\'a}n L{\'o}pez-Espinosa, Nimrod Segev, Sigal Ribon and Michael Kahn for their helpful comments and suggestions. We are grateful to participants in the IBRN conference of June 2021 and notably our discussant, Florian Heider, for very useful feedback. We also thank Selma Catakovic, Daniel Heimgartner and Levi Kuiper for their assistance with the construction of the database. This paper is part of the IBRN project on low interest rates. Publisher Copyright: {\textcopyright} 2023",
year = "2023",
month = sep,
doi = "10.1016/j.jbankfin.2023.106966",
language = "English",
volume = "154",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "ELSEVIER SCIENCE BV",
}