“Negative-for-long” interest rates and customer deposit rate
BOUNGOU, Whelsy
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
BOUNGOU, Whelsy
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
< Leer menos
Laboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
Idioma
EN
Article de revue
Este ítem está publicado en
Finance Research Letters. 2022-05-01, vol. 46, n° part A, p. 102298
Resumen en inglés
Using Difference-in-Differences method and data from 5115 banks located in 74 countries over
2009-2018, we investigate the effects of a negative interest rate policy (NIRP) on banks’ customer
deposit rate. Our results ...Leer más >
Using Difference-in-Differences method and data from 5115 banks located in 74 countries over
2009-2018, we investigate the effects of a negative interest rate policy (NIRP) on banks’ customer
deposit rate. Our results highlight that in response to the introduction of NIRP, banks reduced
their customer deposit rate. We also show that this effect varies from country to country, espe-
cially among eurozone countries. Finally, we find that the reduction in customer deposit rate is
not immediate and that it becomes stronger as NIRP persists over time. Overall, our findings
confirm that banks are reluctant to reduce customer deposit rate. However, this reluctance de-
creases as negative interest rates are prolonged over time.< Leer menos
Palabras clave en inglés
Negative-for-long
Customer deposit rate
Heterogeneity
Centros de investigación