engleski

Determinants of lending interest rates granted to companies in Croatia

Active bank interest rates are the key determinant of company's financial results, economic situation and cash flow. They set company's competitive position and affect the entire national economy. The paper tends to expand knowledge of company granted loan interest rates level as well as of their key setting determinants. Therefore, a comparison of company loan interest rates in Croatia and selected European countries was made as well as interest rate trends examined in the context of their correlation with various factors. A significant deviation of individual variable values for Croatia in comparison with calculated fair values for all countries within the defined scope was found. A strong correlation matrix connection was established between company loan interest rates and some macroeconomic variables as well as banking sector variables in observed countries, including Croatia. Research results may contribute to a better understanding of interest rate trends as well as various factors and be useful in designing appropriate changes in regulation and economic policy of financial mediation.

interest rates ; interest spread ; net interest margin ; interest rates determinants

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