Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212449 
Authors: 
Year of Publication: 
2019
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 15/2019
Publisher: 
Bank of Finland, Helsinki
Abstract: 
I calibrate switching cost for the Finnish retail deposit market by using the approach developed by Oz Shy (2002). It turns out that switching costs faced by deposit customers of the main banks are high, ranging from 200 euros to nearly 1,400 euros. Over the past 20 years, switching costs have increased by roughly 50% in real terms, but in relation to average account balance, switching costs have not essentially changed. I conjecture that differences in the switching costs among the Finnish banks might be explained by differences in their loyalty programs.
JEL: 
G21
L13
L49
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-289-1
Document Type: 
Working Paper

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