tailieunhanh - WORKING PAPER NO. 72 BANK CONCENTRATION AND RETAIL INTEREST RATES

To which extent this decrease in bond yields is associated with changes in short-term or long-term rates becomes more evident when looking at the yield curve defined as the 10-year government bond yield minus the three months Euribor shown in Figure 2. Over the entire year, the slope of the yield curve fell by roughly 20 bp to somewhat less than 130 bp. The same trend is also illustrated by the implied one-year forward rate in nine years, as extracted from the German zero-coupon curve. 20 The rate falls by 10 bp in the course of year, although there are sizeable developments over time. It strongly increases. | EUROPEAN CENTRAL BANK WORKING PAPER SERIES WORKING PAPER NO. 72 BANK CONCENTRATION AND RETAIL INTEREST RATES BY SANDRINE CORVOISIER AND REINT GROPP July 2001 EUROPEAN CENTRAL BANK WORKING PAPER SERIES WORKING PAPER NO. 72 BANK CONCENTRATION AND RETAIL INTEREST RATES BY SANDRINE CORVOISIER AND REINT GROPP1 July 2001 I Corresponding author s email address is . Helpful discussions with Allen Berger and Frank Smets are gratefully acknowledged. Comments and suggestions from Steve Brackman Michael Ehrmann Vitor Gaspar Robert Lensink Simone Manganelli Benoit Mojon Michael Olser Oreste Tristani an anonymous referee and seminar participants at the conference entitled Financial Structure bank behaviour and monetary policy in the EMU in Groningen and the ECB are greatly appreciated. European Central Bank 2001 Address Kaiserstrasse 29 D-603II Frankfurt am Main Germany Postal address Postfach 16 03 19 D-60066 Frankfurt am Main Germany Telephone Internet 49 69 1344 0 http Fax 49 69 1344 6000 Telex 411 144 ecb d All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. The views expressed in this paper are those of the authors and do not necessarily reflect those of the European Central Bank. ISSN .