This study examines changes in market discipline in European corporate deposit markets in response to different crisis periods and regulatory initiatives in the European Union. We measure market discipline by investigating the risk sensitivity of uninsured corporate deposits, i.e. by analyzing...

We estimate differences in funding costs between the largest banks and the rest of the industry. Using deposit rates offered at the branch level, we eliminate many non-risk-related differences between banks. We document significant and persistent pricing advantages at the largest banks for...

This paper studies the effect of shadow banks on monetary aggregates, credit to private agents, and inter-financial institution transactions by incorporating shadow banks into a simple multiple deposit creation scheme. The simple scheme is carefully modified and extended to reflect leverages...

This paper addresses the issue of competition in dual banking markets by analyzing the determinants of deposit rates in Islamic and conventional banks. Using a sample of 20 countries with dual banking systems over the 2000-2014 period, our results show significant differences in the drivers of...

Bank liabilities include debt with long-term maturities and deposits that typically are not withdrawn for extended periods. This subjects bank liabilities to debt dilution. Our analysis shows that this has major effects for how monetary policy shocks are transmitted to banks and for optimal...

We provide causal evidence of the deposits channel of monetary policy transmission in a newsetting, but show that bank entry can reduce or even reverse the relationship between depositmarket structure and monetary policy pass-through. We build a simple model of monetary policytransmission when...

Drawing on the merit goods concept developed by Richard A. Musgrave, this paper introduces the notion of quasi-merit goods. The criteria of eligibility for merit goods are vague. A quasi-merit good constitutes a special case where government protection and sponsorship are obtained via public...

We exploit a large and unexpected increase in the Colombian insurance threshold to investigate how depositors respond to higher deposit insurance. Monthly depositor-level records from a major bank show that the level and growth rate of deposits rise with higher coverage. Individuals who were...

We study how deposit competition affects a bank’s decision to securitize mortgages. Exploiting the state-specific removal of deposit market caps across the US as a source of competition, we find a 7.1 percentage point increase in the probability that banks securitize mortgage loans. This...