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

Ana María Iregui; Jesús Otero

doi:10.1016/j.econlet.2012.09.013

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

Ana María Iregui, Jesús Otero

Faculty of Economics

Research output: Contribution to journal › Research Article › peer-review

6 Scopus citations

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 sizes, deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar sizes, supporting market segmentation.

Original language	English (US)
Pages (from-to)	29-32
Number of pages	4
Journal	Economics Letters
Volume	118
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2012.09.013
State	Published - Jan 2013

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/j.econlet.2012.09.013

Cite this

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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 sizes, deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar sizes, supporting market segmentation.",

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AB - 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 sizes, deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar sizes, supporting market segmentation.

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

Abstract

All Science Journal Classification (ASJC) codes

UN SDGs

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