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

Borradores de Economia
Number: 
733
Published: 
Classification JEL: 
G21
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy
Download document

The most recent

Unpaid Care Work and Regional Gender Gaps in Labor Force Participation in Colombia
Luis Armando Galvis-Aponte, Adriana Marcela Rivera-Zárate
Minimum Markup Laws and Multiproduct Pricing
Daniel Herrera-Araujo, Jorge Florez-Acosta
Assessing the Effects of Recent Provisioning Rules on Consumer Credit Allocation in Colombia
Diego Fernando Cuesta-Mora, Fredy Alejandro Gamboa-Estrada, Camilo Eduardo Sánchez-Quinto

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