Bank Deposits and Deposit Rates: The Impact of COVID-19 and the Effect of ESG Scores

Alessio Bongiovanni () and Jonathan Williams ()
Additional contact information
Alessio Bongiovanni: Leeds University Business School, University of Leeds
Jonathan Williams: University of Surrey

Chapter Chapter 7 in Corporate Governance in the Banking and Financial Sector, 2025, pp 161-182 from Palgrave Macmillan

Abstract: Abstract We consider the effect of the COVID-19 pandemic on deposit flows and prices at bank holding companies in the US. Specifically, we examine whether deposit markets are sensitive to banks’ ESG credentials on the grounds that greater commitment by banks to ESG as evidenced by higher ESG scores is proxy for trust, which is known to dissipate following an exogenous shock. Our empirical evidence shows that depositors used the information embedded in banks’ ESG scores to discipline banks. Following the shock, depositors rewarded high ESG scoring banks with faster growth of noninterest-bearing deposits and willingness to accept lower deposit interest rates.

Keywords: Depositor Discipline; ESG Scores; COVID-19 Pandemic; Trust; Bank Performance (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-031-83353-3_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9783031833533

DOI: 10.1007/978-3-031-83353-3_7

Access Statistics for this chapter

More chapters in Palgrave Macmillan Studies in Banking and Financial Institutions from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().