応用ミクロ経済学セミナー
Applied Microeconomics Workshop

宮内悠平  氏 (MIT: Massachusetts Institute of Technology)

Interest Rate Cap, Relationship Lending, and Bank Competition in Bangladesh

■日時：5月7日(木) 16：30-18：00
■場所：法経済学部東館　法経東館　102演習室

■参加者：主に経済学研究科の関連する教員および大学院生が中心ですが、自由に参加できます。
Doctoral students and postdoctoral fellows are welcome to attend the seminar.
Master’s and undergraduate students who are interested in the topic are also welcome.

連絡先：kono[at]econ.kyoto-u.ac.jp　（高野）

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Abstract: I study the short-term and long-term impact of the interest rate cap on loans for large and medium enterprises introduced in 2009 and lifted in 2011 and 2012 in Bangladesh. Using the branch-level variation of pre-regulation interest rates and loans for consumer goods as a placebo, I find that the introduction of the interest rate cap significantly increased the aggregate outstanding amount, though the removal of the cap had a minor negative impact. This persistence of the policy is consistent with a model of relationship banking, where banks with market power face borrowers with unknown types over multiple periods. In such an environment, banks “under-experiment” on borrowers by setting high interest rates without the interest rate cap, and the cap “forces” banks to experiment on more borrowers. This makes banks to have information about more borrowers ex-post, hence the credit supply and the per-period profit increases after the cap is lifted. Overall, the results show that there is a distortion in the banking market in Bangladesh due to under-experimentation and insufficient competition, and the lending rate cap was effective in resolving it.