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Low interest rates - do they revise household saving motives in the Euro area?

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  • Katarzyna Kochaniak

    (Cracow University of Economics)

Abstract

This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years 2009-2015. It analyses tendencies in household deposits (overnight, with agreed maturity and redeemable at noti ce), and att empts to link them with certain household saving motives (target, reti rement and precauti onary). The paper identi fi es those deposit categories which appeared as sensitive to declining interest rates and indicates the Eurozone countries whose populations are expected to revise their savings plans. Precise implications are drawn for target saving motives of households in Austria, Cyprus and Malta. However, in the case of two other moti ves, the analysis does not conclude on the impact of decreasing MFI interest rates

Suggested Citation

  • Katarzyna Kochaniak, 2016. "Low interest rates - do they revise household saving motives in the Euro area?," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 12(1), pages 43-56, June.
    • Handle: RePEc:rze:efinan:v:12:y:2016:i:1:p:43-56
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    Cited by:

    1. Emilia Anuta Corovei & Adela Socol, 2019. "The Macroeconomic Drivers for Household Deposits Growth in the Eurozone," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 5(3), pages 144-151, September.

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    More about this item

    Keywords

    household deposits; MFI interest rates; household saving motives;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G01 - Financial Economics - - General - - - Financial Crises

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