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Deposit concentration at financial intermediaries

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  • Juelsrud, Ragnar E.

Abstract

In this paper I investigate the degree and implications of deposit concentration at Norwegian financial intermediaries. I document that deposits are highly concentrated within institutions. Moreover, there is limited movements in the degree of deposit concentration over time. In 2018, deposits at the top 5% depositors according to size corresponded to approximately 53 % of all deposits. Variation in flows at the top 5 % of depositors according to size explain approximately 88 % of total deposit flows.

Suggested Citation

  • Juelsrud, Ragnar E., 2021. "Deposit concentration at financial intermediaries," Economics Letters, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:ecolet:v:199:y:2021:i:c:s0165176520304791
    DOI: 10.1016/j.econlet.2020.109719
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    References listed on IDEAS

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    1. Gauti B. Eggertsson & Ragnar E. Juelsrud & Lawrence H. Summers & Ella Getz Wold, 2019. "Negative Nominal Interest Rates and the Bank Lending Channel," NBER Working Papers 25416, National Bureau of Economic Research, Inc.
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    3. Ragnar E Juelsrud & Plamen T Nenov & Itay Goldstein, 2020. "Dividend Payouts and Rollover Crises," The Review of Financial Studies, Society for Financial Studies, vol. 33(9), pages 4139-4185.
    4. Itamar Drechsler & Alexi Savov & Philipp Schnabl, 2017. "The Deposits Channel of Monetary Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1819-1876.
    5. Geir H. Bjønnes & Steinar Holden & Dagfinn Rime & Haakon O. Aa. Solheim, 2014. "“Large” versus “Small” Players: A Closer Look at the Dynamics of Speculative Attacks," Scandinavian Journal of Economics, Wiley Blackwell, vol. 116(2), pages 506-538, April.
    6. Itamar Drechsler & Alexi Savov & Philipp Schnabl, 2018. "Banking on Deposits: Maturity Transformation without Interest Rate Risk," NBER Working Papers 24582, National Bureau of Economic Research, Inc.
    7. Douglas W. Diamond & Philip H. Dybvig, 2000. "Bank runs, deposit insurance, and liquidity," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 24(Win), pages 14-23.
    8. Xavier Gabaix, 2011. "The Granular Origins of Aggregate Fluctuations," Econometrica, Econometric Society, vol. 79(3), pages 733-772, May.
    9. Itay Goldstein & Ady Pauzner, 2005. "Demand–Deposit Contracts and the Probability of Bank Runs," Journal of Finance, American Finance Association, vol. 60(3), pages 1293-1327, June.
    10. Sigurd Galaasen & Rustam Jamilov & Hélène Rey & Ragnar Juelsrud, 2020. "Granular credit risk," Working Paper 2020/15, Norges Bank.
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    Cited by:

    1. Kanis Saengchote, 2022. "Decentralized lending and its users: Insights from Compound," Papers 2212.05734, arXiv.org.
    2. Saengchote, Kanis, 2023. "Decentralized lending and its users: Insights from compound," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Deposits; Concentration; Financial intermediaries;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G20 - Financial Economics - - Financial Institutions and Services - - - General

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