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Broader use of saving products among people can make deposit funding of the banking system more resilient


  • Han, Rui
  • Melecky, Martin


Can broader use of formal saving tools among people boost the stability of bank deposit funding? We examine this question using the cross-country data on the use of formal savings from the Global Findex and the bank deposit growth from the International Financial Statistics. We run a cross-country regression using the averages over the 2007–10 period while controlling for relevant covariates such as the average level of development and existence of deposit insurance. We further condition on the access to deposits by firms using the Enterprise Survey data. The experience from the global financial crisis suggests that when a greater share of people use formal saving products, the country’s banking system enjoys more stable deposit funding.

Suggested Citation

  • Han, Rui & Melecky, Martin, 2017. "Broader use of saving products among people can make deposit funding of the banking system more resilient," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 47(C), pages 89-102.
  • Handle: RePEc:eee:intfin:v:47:y:2017:i:c:p:89-102
    DOI: 10.1016/j.intfin.2016.11.005

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    References listed on IDEAS

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    More about this item


    Use of formal saving instruments; Global Findex; Bank deposit growth and withdrawals; Banking sector resilience; Global financial crisis;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G01 - Financial Economics - - General - - - Financial Crises
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


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