Testing the law of one price in retail banking : an analysis for Colombia using a pair-wise approach

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Borradores de Economía; No. 733
Date published
2012-09-15
Date of last update
2012-09-15
Author
Iregui-Bohórquez, Ana María
Otero, Jesús
Document language
spa
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Las opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.
Abstract
We apply a pair-wise approach to test the law of one price for deposit (lending) rates in Colombia. We find that when banks are of different size deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly
JEL Codes
G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Keywords
Law of one price ; Retail interest rates ; Colombia ;
URI
https://repositorio.banrep.gov.co/handle/20.500.12134/5778
https://hdl.handle.net/20.500.12134/5778
https://doi.org/10.32468/be.733
https://ideas.repec.org/p/bdr/borrec/733.html
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This work is licensed under a Creative Commons Reconocimiento-NoComercial 4.0.This document has been deposited by the author (s) under the following certificate of deposit