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Bank branch deposit competitiveness and deposit growth: Granular data and a new measure of competitiveness

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  • Cave, Joshua
  • Keasey, Kevin
  • Mascia, Danilo V.

Abstract

We investigate the relationship between deposit growth and branch deposit competitiveness. We introduce a new measure of competitiveness focused at the branch level that utilizes granular product data. We find more competitive branches have higher rates of deposit growth that vary across product types and local market structures. The new measure of competitiveness at the branch level is intended to complement existing bank and market-level measures of competition and opens up a number of new opportunities for banking research and policy investigation.

Suggested Citation

  • Cave, Joshua & Keasey, Kevin & Mascia, Danilo V., 2022. "Bank branch deposit competitiveness and deposit growth: Granular data and a new measure of competitiveness," Economics Letters, Elsevier, vol. 210(C).
    • Handle: RePEc:eee:ecolet:v:210:y:2022:i:c:s0165176521004389
    DOI: 10.1016/j.econlet.2021.110174
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    References listed on IDEAS

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    1. Itamar Drechsler & Alexi Savov & Philipp Schnabl, 2021. "Banking on Deposits: Maturity Transformation without Interest Rate Risk," Journal of Finance, American Finance Association, vol. 76(3), pages 1091-1143, June.
    2. Bolt, Wilko & Humphrey, David, 2015. "A frontier measure of U.S. banking competition," European Journal of Operational Research, Elsevier, vol. 246(2), pages 450-461.
    3. Beck, Thorsten, 2008. "Bank competition and financial stability : friends or foes ?," Policy Research Working Paper Series 4656, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bank branch deposit competitiveness; Deposit growth;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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