to negative deposit rates, banks keep deposit rates at zero as policy rates decline, while accepting squeezed and … possibly negative deposit margins. The lowest current policy rate at which the banking system is willing to shield depositors … from a negative deposit rate decreases with increasing i) degrees of loss aversion; ii) levels of switching costs; and iii …

, increase in monetary policy rates to estimate the deposit channel of monetary policy using an extensive credit register that … includes all bank-firm lending relationships in all euro area countries. We find that banks experiencing large deposit outflows … credit restrictions due to the deposit outflows as interest rates surge. We resort to the deposit beta as an instrument …

deposit account makes a household more likely to hold deposits at the same bank later despite better alternatives and more … likely to borrow there. Consistent with this, banks pay higher deposit rates to potential future borrowers. Then they charge … than supply complementarities. Finally, discounting future cross-selling profits motivates lower deposit spreads in times …