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The Stability of Banks’ Retail Deposits at the Early Stages of Covid-19 Pandemic: A Preliminary Evidence from Euro Area

Author

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  • Paolo Agnese
  • Gianfranco A. Vento

Abstract

In this paper we analyze trends of euro area banks’ retail deposits at the early stages of Covid-19. It emerges that overnight and total deposits placed by households and non-financial corporations in the major euro area countries (Germany, France, Italy and Spain) are “sluggish†and “sticky†even in an extraordinary period characterized by unexpected shocks due to the ongoing pandemic. All this for the benefit of solidity of the European banking and financial system and, more broadly, of the systemic risk.  JEL classification number: G21.

Suggested Citation

  • Paolo Agnese & Gianfranco A. Vento, 2020. "The Stability of Banks’ Retail Deposits at the Early Stages of Covid-19 Pandemic: A Preliminary Evidence from Euro Area," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(6), pages 1-12.
    • Handle: RePEc:spt:apfiba:v:10:y:2020:i:6:f:10_6_12
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    References listed on IDEAS

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    1. Michael Brei & Claudio Borio & Leonardo Gambacorta, 2020. "Bank intermediation activity in a low‐interest‐rate environment," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 49(2), July.
    2. Florian Heider & Farzad Saidi & Glenn Schepens, 2019. "Life below Zero: Bank Lending under Negative Policy Rates," The Review of Financial Studies, Society for Financial Studies, vol. 32(10), pages 3728-3761.
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    5. Schepens, Glenn, 2018. "Bank lending under negative policy rates," Research Bulletin, European Central Bank, vol. 43.
    6. Altavilla, Carlo & Burlon, Lorenzo & Giannetti, Mariassunta & Holton, Sarah, 2022. "Is there a zero lower bound? The effects of negative policy rates on banks and firms," Journal of Financial Economics, Elsevier, vol. 144(3), pages 885-907.
    7. Adrian Van Rixtel & Gabriele Gasperini, 2013. "Financial crises and bank funding: recent experience in the euro area," BIS Working Papers 406, Bank for International Settlements.
    8. repec:ecb:ecbrbu:2018:0043:1 is not listed on IDEAS
    9. Morten Linnemann Bech & Aytek Malkhozov, 2016. "How have central banks implemented negative policy rates?," BIS Quarterly Review, Bank for International Settlements, March.
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    Cited by:

    1. Sayyed Sadaqat Hussain Shah & Ștefan Cristian Gherghina & Rui Miguel Dantas & Saliha Rafaqat & Anabela Batista Correia & Mário Nuno Mata, 2023. "The Impact of COVID-19 Pandemic on Islamic and Conventional Banks’ Profitability," Economies, MDPI, vol. 11(4), pages 1-17, March.

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    More about this item

    Keywords

    Covid-19; Banks’ retail deposits; Households and non-financial corporations; Euro area.;
    All these keywords.

    JEL classification:

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

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