Financial Inclusion for Financial Stability : Access to Bank Deposits and the Growth of Deposits in the Global Financial Crisis

In crisis times, depositors get anxious, can run on banks, and withdraw their deposits. Correlated withdrawals of bank deposits could be mitigated if bank deposits are more diversified, that is, held by more individuals. This paper examines the link between the broader access to bank deposits prior to the 2008 crisis and the dynamics of bank deposit growth during the crisis, while controlling for relevant covariates. Employing proxies for access to deposits and the use of bank deposits, the authors find that greater access to bank deposits can make the deposit funding base of banks more resilient in times of financial stress. Policy efforts to enhance financial stability should thus not only focus on macroprudential regulation, but also recognize the positive effect of broader access to bank deposits on financial stability.

Bibliographic Details

Main Authors:	Han, Rui, Melecky, Martin
Language:	English en_US
Published:	World Bank, Washington, DC 2013-08
Subjects:	ACCESS TO BANK, ACCESS TO CREDIT, ACCESS TO FINANCE, ACCESS TO FINANCIAL SERVICES, ACCESS TO SAVINGS, ACCOUNTING, ACCOUNTING STANDARDS, BANK ACCOUNT, BANK ACCOUNTS, BANK COMPETITION, BANK CONCENTRATION, BANK DEPOSIT, BANK DEPOSITORS, BANK DEPOSITS, BANK FINANCING, BANK LIQUIDITY, BANK RUN, BANK RUNS, BANK STABILITY, BANKERS ASSOCIATION, BANKING CONCENTRATION, BANKING CRISES, BANKING CRISIS, BANKING SECTOR, BANKING SECTOR ASSETS, BANKING SECTOR STABILITY, BANKING SECTORS, BANKING SERVICES, BANKING SYSTEM, BANKING SYSTEMS, BLANKET DEPOSIT GUARANTEES, BUSINESS CYCLE, CAPITAL ACCOUNT, CAPITAL CONTROLS, CAPITAL SENDING, COMMERCIAL BANKS, CONCENTRATION RATIO, CONSUMER PRICE INDEX, CONTAGION, CORPORATE GOVERNANCE, CREDITORS, CRISIS COUNTRIES, CURRENCY, DATA AVAILABILITY, DEPOSIT BASE, DEPOSIT FUNDING, DEPOSIT GROWTH, DEPOSIT GUARANTEES, DEPOSIT INSURANCE, DEPOSIT INSURANCE SCHEMES, DEPOSIT MONEY BANKS, DEPOSIT VARIABLES, DEPOSIT WITHDRAWAL, DEPOSIT WITHDRAWALS, DEPOSITOR, DEPOSITOR CONFIDENCE, DEPOSITORS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DIVERSIFICATION, DOMESTIC FINANCIAL INTERMEDIATION, DUMMY VARIABLE, EARNINGS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EMERGING MARKETS, EQUILIBRIUM CREDIT, EXPLICIT DEPOSIT, EXPLICIT DEPOSIT INSURANCE, EXPLICIT DEPOSIT INSURANCE SCHEME, EXPLICIT DEPOSIT INSURANCE SCHEMES, EXTERNAL FINANCING, EXTERNAL FUNDING, FINANCIAL ACCESS, FINANCIAL CONDITION, FINANCIAL CONDITIONS, FINANCIAL CRISIS, FINANCIAL DEEPENING, FINANCIAL DEVELOPMENT, FINANCIAL FLOWS, FINANCIAL INFRASTRUCTURE, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL OPENNESS, FINANCIAL POLICY, FINANCIAL RISK, FINANCIAL SECTOR, FINANCIAL SECTOR POLICY, FINANCIAL SECTOR REGULATION, FINANCIAL SECTOR STRATEGY, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL STRESS, FINANCIAL SYSTEM, FORMAL FINANCIAL INSTITUTION, FUNDING SOURCE, GLOBAL FINANCE, GREATER ACCESS, GROWTH IN BANK DEPOSIT, GROWTH IN BANK DEPOSITS, GROWTH OF DEPOSITS, GROWTH RATE, HOUSEHOLD ACCESS, HOUSEHOLDS, INCOME, INCOME GROUPS, INCOME LEVEL, INFLATION, INFORMATIONAL ASYMMETRY, INSTRUMENT, INSURANCE, INSURED DEPOSITORS, INTERNATIONAL BANK, INVESTMENT FINANCING, INVESTMENT IN SECURITIES, LARGE DEPOSITORS, LENDERS, LEVEL OF INFLATION, LEVERAGE, LIQUID ASSETS, LIQUIDITY, LIQUIDITY POSITION, LIQUIDITY RISK, LOAN, LOW-INCOME COUNTRIES, MACRO-STABILITY, MACROECONOMIC STABILITY, MARKET INTEREST, MARKET INTEREST RATES, MIDDLE-INCOME COUNTRIES, NATIONAL CURRENCY, OUTPUT, OUTSTANDING DEPOSITS, OVERSEAS BANK, POLICY RESPONSE, POLICY RESPONSES, POLITICAL ECONOMY, PORTFOLIO, POVERTY ALLEVIATION, PRIVATE CREDIT, PROVISION OF CREDIT, PROVISIONING RULES, PUBLIC DEPOSIT INSURANCE, PUBLIC POLICY, RETURN, RETURNS, RISK AVERSION, RISK EXPOSURE, RISK MANAGEMENT, SAVINGS, SAVINGS DEPOSITS, SECURITIES, SHARE OF ASSETS, SMALL SAVERS, SOURCE OF FUNDS, SYSTEMIC BANKING CRISES, SYSTEMIC BANKING CRISIS, SYSTEMIC RISK, TRADITIONAL DEPOSIT, USE OF DEPOSITS, VOLATILITY, WHOLESALE FUNDING, WITHDRAWAL, WITHDRAWAL DEMAND, WITHDRAWAL OF DEPOSITS, WORLD DEVELOPMENT INDICATOR,
Online Access:	http://documents.worldbank.org/curated/en/2013/08/18121066/financial-inclusion-financial-stability-access-bank-deposits-growth-deposits-global-financial-crisis https://hdl.handle.net/10986/16010
Tags:	Add Tag No Tags, Be the first to tag this record!