Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62057
Authors: 
Schlüter, Tobias
Sievers, Sönke
Hartmann-Wendels, Thomas
Year of Publication: 
2012
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2012: Neue Wege und Herausforderungen für den Arbeitsmarkt des 21. Jahrhunderts - Session: Credit and Liquidity Risk F13-V1
Abstract: 
We examine the saving behavior of banks retail customers. Our unique dataset comprises the contract and cash flow information for approximately 2.2 million individual contracts from 1991 to 2010. We find that contractual rewards, i.e., qualified interest payments, and government subsidies, effectively stabilize saving behavior. The probability of an early contract termination decreases by approximately 40%, and cash flow volatility drops by about 25%. Our findings provide important insights for the newly proposed bank liquidity regulations (Basel III) regarding the stability of deposits and the minimum requirements for risk management (European Commission DIRECTIVE 2006/48/EC; in Germany, translated into the MaRisk). Finally, the results inform bank managers how the price setting via deposit interests influences their funding.
JEL: 
G01
G21
G28
Document Type: 
Conference Paper

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