%0 Journal Article
%T Determinants of banksĄŻ net interest margins in Central and Eastern Europe
%A Mirna Dumicic
%A Tomislav Rizdak
%J Financial Theory and Practice
%D 2013
%I Institute of Public Finance
%X This research analyzes the main determinants of the net interest margin of banks operating in Central and Eastern European (CEE) countries in the period from 1999 to 2010. The results reveal several main drivers of net interest margins in the CEE. Prior to 2008 the net interest margins declined primarily due to strong capital inflows and stable macroeconomic environment. In the crisis period, significant rise in government debt accompanied by the increase in macroeconomic risks and abating capital inflows were pushing margins up while other factors such as low credit demand, higher capitalization and significantly increased share of non-performing loans pressured banksĄŻ margins down. The results also confirm the important contribution of higher efficiency to lowering banksĄŻ margins.
%K net interest margin
%K CEE
%U http://fintp.ijf.hr/upload/files/ftp/2013/1/dumicic_rizdak.pdf