Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211561 
Authors: 
Year of Publication: 
1989
Series/Report no.: 
Bank of Finland Discussion Papers No. 26/1989
Publisher: 
Bank of Finland, Helsinki
Abstract: 
This paper presents a partial equilibrium model of the determination of deposit rates of interest and bank service charges in a competitive banking industry. It is shown that uncertainty regarding the future use of transactions services can cause a positive. interest rate margin on deposits, and below-cost pricing of transactions services. This contrasts with existing literature which has explained the existence of "implicit interest" as a consequence of interest rate ceilings or non-neutral taxation.
Persistent Identifier of the first edition: 
ISBN: 
951-686-215-2
Document Type: 
Working Paper

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