The Banking Spread and the Resource Cost of Capital

Número: 
92
Publicado: 
Clasificación JEL: 
G21, F30, F34, O4, E43, E5
Palabras clave: 
Banking, Cost, Capital

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The paper provides a model of the banking firm in the macroeconomy intended to explain what determines the interest rate spread. A key factor explaining the spread in our model is the resource cost of capital. A statistical result confirms the prediction