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Hidden Cost of Better Bank Services : Carefree Depositors in Riskier Banks?

Choi, Dong Beom - 2018

Better customer service helps banks attract core deposits and increase funding stickiness by raising depositors' switching costs and enhancing their loyalty. This funding stickiness, however, could impair market discipline and lead to excessive risk-taking. We find that banks providing better...

Persistent link: https://www.econbiz.de/10012936566

Peer Pressure : How do Peer-to-Peer Lenders affect Banks' Cost of Deposits and Liability Structure?

Farag, Hisham - 2019

This paper shows that banks' cost of deposits increase following exposure to the Fintech sector. We exploit the exogenous, staggered removal of restrictions on investing through peer-to-peer lending platforms by US states. The entry of Lending Club and Prosper cause the cost of deposits to...

Persistent link: https://www.econbiz.de/10012868968

Disclosure, Ambiguity and Depositors' Discipline in European Banking System

Guillemin, François - 2017

-2013. The bank disclosure provides tools to help depositors to exert there governance onto banks manager to align managers …

Persistent link: https://www.econbiz.de/10012968026

The Price of Deposit Liquidity : Banks versus Microfinance Institutions

Laureti, Carolina - 2016

Using data from Bangladesh, this article finds that the liquidity premium – the difference between the interest paid on illiquid and liquid savings accounts – is higher in commercial banks than in microfinance institutions. One possible interpretation lies in the higher prevalence of...

Persistent link: https://www.econbiz.de/10013005625

Banking on Deposits : Maturity Transformation Without Interest Rate Risk

Drechsler, Itamar - 2020

We show that maturity transformation does not expose banks to interest rate risk---it hedges it. The reason is the deposit franchise, which allows banks to pay deposit rates that are low and insensitive to market interest rates. Hedging the deposit franchise requires banks to earn income that is...

Persistent link: https://www.econbiz.de/10012854509

The Price of Deposit Liquidity : Banks Versus Microfinance Institutions

Laureti, Carolina - 2018

Using data from Bangladesh, this paper finds that the liquidity premium—the difference between the interest paid on illiquid and liquid savings accounts—is higher in commercial banks than in microfinance institutions. One possible interpretation lies in the higher prevalence of...

Persistent link: https://www.econbiz.de/10012919897

Adequacy of Audit Committees : A Study of Deposit Banks in Turkey

Kartal, Mustafa Tevfik - 2018

The purpose of this study is to investigate the adequacy of the audit committees in Turkish Banking Sector. Considering national and international legislation, and best practices, audit committees' adequacy involves the issues regarding committees and the responsibilities of committees....

Persistent link: https://www.econbiz.de/10012924512

Why are interest rates on bank deposits so low?

Busch, Ramona; Memmel, Christoph - 2021

Using granular data of German banks for the 2003 to 2018 period, we analyse the determinants of bank rates on retail … deposits. We find that a bank's rate on sight deposits is especially low if the bank operates in rural districts, if it is not … exposed to strong competition and if it provides much service. Regarding the rates on term deposits, we find that the bank …

Persistent link: https://www.econbiz.de/10012697977

Dynamic banking and the value of deposits

Bolton, Patrick; Li, Ye; Wang, Neng; Yang, Jinqiang - 2020

perfectly controlled by the bank. Demand deposit accounts commit the bank to allow holders to withdraw or deposit funds at will …. The resultant uncertainty in deposit flows exposes the bank to the risk of violating regulatory restrictions on leverage …. Deposits create value for the bank except when it is close to hitting the leverage restrictions, because sudden deposit inflows …

Persistent link: https://www.econbiz.de/10012244537

Factors affecting return on deposit (ROD) of sharia banks in Indonesia

Wahyudi, Sugeng; Nofendi, Deki; Robiyanto, Robiyanto; … - In: Verslas : teorija ir praktika : Vilniaus Gedimino … 19 (2018), pp. 166-176

' size (BOARD), sharia supervisory board (DPS), bank size (SIZE), and interest rate (INT) and sharia bank ownership status …. Meanwhile, DPS and DFOR have no significant effect on ROD of sharia bank in Indonesia. …

Persistent link: https://www.econbiz.de/10012019171