O-SII designation and deposit funding costs

Ursula Vogel

Economics Letters, 2020, vol. 192, issue C

Abstract: This paper investigates implications of the designation of national systemically important banks (Other Systemically Important Institutions — O-SIIs) in Germany. It looks whether being labelled as ‘systemically important financial institution’ affects banks’ deposit funding costs. Results show that being designated as O-SII brings a funding cost advantage of about 30bps for deposits in the aftermath of the announcement. The finding points toward some unintended consequence of measures implemented to address ‘too-big-to-fail’ related issues.

Keywords: Bank regulation; Too-big-to-fail; Deposit funding costs (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:192:y:2020:i:c:s0165176520301786

DOI: 10.1016/j.econlet.2020.109261

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