01815cas a2200241 a 4500 AALejournalIMF014245 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475513745 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Western Hemisphere Dept. Paraguay : Selected Issues. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (33 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper analyses Paraguay's effective interest spreads using various methodologies. Interest rate spreads in Paraguay continue to be some of the highest in Latin America. A series of bank crises in the late 1990s and early 2000s weakened the financial system and pushed up spreads. The analysis suggests that operational costs, rising profits, and the need to cover credit and liquidity risks are the main factors behind Paraguay's effective spreads. Improving data quality and mechanisms for sharing credit information could contribute to reduced spreads. Although the empirical results suggested that banking concentration has not given rise to greater spreads, adding new banking entrants may lower margins by increasing competition within the sector. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2014/061 Full text available on IMF http://elibrary.imf.org/view/journals/002/2014/061/002.2014.issue-061-en.xml IMF e-Library