Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/230439
Authors: 
Arghyrou, Michael Georgiou
Gadea, María Dolores
Year of Publication: 
2019
Series/Report no.: 
Cardiff Economics Working Papers No. E2019/6
Abstract: 
We examine the relationship between private bank deposits and macro/fiscal risk in the euro area. We test three hypotheses: First, private bank deposits relative to Germany are determined by macro/fiscal risk factors. Second, this relationship is time-varying. Third, time-variation is driven by the level of macro/fiscal risk. Our findings validate all three tested hypotheses. They also reveal persistent fragmentation between EMU core and periphery banking systems caused by a deficit of trust in periphery banking systems, unmitigated by the introduction of OMT and European Banking Union. Our findings have implications for the introduction of the European Deposits Insurance Scheme (EDIS), for which they offer tentative support.
Subjects: 
Private bank deposits
macro/fiscal risk
eurozone
TVP panel
fragmentation
JEL: 
F30
F36
F45
G11
G15
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.