The Travels of a bank deposit in turbulent times: the importance of deposit insurance design for cross-border deposits
- We examine the impact of the existence on an explicit deposit insurance (DI) scheme and its design features on bilateral cross‐border deposits (CBD) in a gravity model setting. We find that both the absolute quality of a country's DI and its relative quality vis‐à‐vis other countries' DI generally affect depositor behavior. However, during systemic banking crises, cross‐border depositors primarily seek countries with the best DI schemes. Similarly, during the 2008–2009 great financial crisis, the emergency actions taken by the governments, which supply and maintain these safe havens, have led to substantial relocations of CBD. (JEL F34, G18)
Author: | Shusen Qi, Stefanie Kleimeier, Harald Sander |
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URN: | urn:nbn:de:hbz:832-epub4-15972 |
DOI: | https://doi.org/10.1111/ecin.12845 |
ISSN: | 0095-2583 |
Parent Title (English): | Economic Inquiry |
Year of Completion: | 2019 |
Publisher: | Wiley Periodicals, Inc. |
Place of publication: | Boston, USA |
Document Type: | Article |
Language: | English |
Date of first Publication: | 2020/02/17 |
Date of Publication (online): | 2021/02/23 |
GND-Keyword: | Depositen |
Volume: | 58 |
Issue: | 2 |
Page Number: | 18 |
Institutes: | Wirtschafts- und Rechtswissenschaften (F04) / Fakultät 04 / Schmalenbach Institut für Wirtschaftswissenschaften |
Dewey Decimal Classification: | 300 Sozialwissenschaften / 330 Wirtschaft |
Open Access: | Open Access |
DeepGreen: | DeepGreen |
Licence (German): | Creative Commons - CC BY - Namensnennung 4.0 International |