Determinants of the Cost of Financial Intermediation: Evidence from Emerging Economies

This study examines the determinants of financial intermediation costs banks in ten Emerging Economies (EEs) period 2000–2018 using panel data 1335 banks. Empirically, this applies single-stage dealership model and its extensions by introducing new bank country-level variables. We find robust evidence that investment government securities market openness positively affect while trilemma index negatively affects them. During world crisis, increased. Moreover, we observe cost inefficiency, credit risk, regulatory regime are crucial drivers costs. draw important implications for scholars policymakers.