Brown, MartinMaurer, Maria RuedaPak, TamaraTynaev, Nurlanbek2012-03-302012-03-302009Journal of Banking and Finance03784266https://hdl.handle.net/10986/5462We examine the impact of financial sector reform on interest rate levels and spreads using Kyrgyz bank-level data from 1998 to 2005. We find that, in addition to macroeconomic stabilization, structural reforms to the banking sector significantly contributed to lower interest rates. In particular, our results suggest that foreign bank entry and regulatory efforts to increase average bank size were important in reducing deposit rates. In contrast, we find little evidence that banking sector reform or macroeconomic stabilization has impacted interest rate spreads.ENInterest Rates: Determination, Term Structure, and Effects E430BanksOther Depository InstitutionsMicro Finance InstitutionsMortgages G210Financial Institutions and Services: Government Policy and Regulation G280Economic Development: Financial MarketsSaving and Capital InvestmentCorporate Finance and Governance O160Socialist Systems and Transitional Economies: National Income, Product, and ExpenditureMoneyInflation P240Socialist Institutions and Their Transitions: Financial Economics P340Journal ArticleWorld Bank