Private bank deposits and macro/fiscal risk in the euro-area

Arghyrou, Michael G. ; Gadea, María-Dolores (Universidad de Zaragoza) ; Kontonikas, Alexandros

Resumen: We use a panel of ten euro area member states to examine the link between macro/fiscal risk and private bank deposits relative to Germany. Our main findings are summarised as follows: First, the relationship between relative deposits and macro/fiscal risk factors is not stable over time. Second, the significant time variation characterizing this relationship is driven by aggregate EMU-wide macro/fiscal risk conditions. Third, relative deposits in periphery EMU countries are generally more responsive to macro/fiscal risk. Fourth, the ECB’s unconventional monetary policy moderated the effect of the global financial and European debt crises on the relationship between relative deposits and macro/fiscal risk. Our empirical findings can inform the ongoing policy debate regarding the completion of the European Banking Union.

Idioma: Inglés

DOI: 10.1016/j.jimonfin.2023.102992

Año: 2024

Publicado en: Journal of International Money and Finance 140 (2024), 102992 [18 pp.]
ISSN: 0261-5606

Financiación: info:eu-repo/grantAgreement/ES/MICINN/ECO2017-83255-C3-1-P
Financiación: info:eu-repo/grantAgreement/ES/MINEIC/ECO2017-83255-C3-3-P

Tipo y forma: Article (Published version)

Área (Departamento): Área Economía Aplicada (Dpto. Economía Aplicada)