The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits

Publikation: Bidrag til tidsskriftTidsskriftartikelfagfællebedømt

We study the impact of too-big-to-fail (TBTF) guarantees on the market for retail deposits. Exploiting information about all personal deposit accounts in Denmark and salient changes to the deposit insurance limit, we provide evidence that systemically important banks successfully retain and attract uninsured deposits in a crisis at the expense of other banks even as they differentially lower their interest rates. The funding shock suffered by nonsystemic banks causes a decrease in their lending. The results point to the distortive effects of TBTF guarantees in the market for retail deposits.
TidsskriftThe Review of Financial Studies
Udgave nummer12
Sider (fra-til)4653–4695
StatusUdgivet - 15 mar. 2019

Antal downloads er baseret på statistik fra Google Scholar og

Ingen data tilgængelig

ID: 215920800