Financial Inclusion for Stability: Access to Bank Deposits and the Deposit Growth during the Global Financial Crisis Report as inadecuate




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Abstract

In crisis times, depositors get anxious, can run on banks, and withdraw their deposits. Correlated deposit withdrawals of bank deposits could be mitigated if bank deposits are more diversified, i.e. held by more individuals. This paper examines the link between a broader access to bank deposits prior to the 2008 crisis and the dynamics of bank deposit growth in the crisis, while controlling for relevant covariates. Employing the proxies of Honohan 2008 for access to deposits and of Demirguc-Kunt and Klapper 2012 for the use of bank deposits, the authors find that greater access to bank deposits can make the deposit funding base of banks more resilient in times of financial stress. Policy efforts to enhance financial stability should thus focus not only on macroprudential regulation, but also recognize the positive effect of broader access to bank deposits on financial stability.



Item Type: MPRA Paper -

Original Title: Financial Inclusion for Stability: Access to Bank Deposits and the Deposit Growth during the Global Financial Crisis-

Language: English-

Keywords: Financial Inclusion, Access to Deposits, Deposit Withdrawals, Financial Stability, 2008 Global Financial Crisis.-

Subjects: G - Financial Economics > G0 - General > G01 - Financial CrisesG - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; MortgagesG - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation-





Author: Han, Rui

Source: https://mpra.ub.uni-muenchen.de/45157/







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