Experiences of the National Deposit Insurance Fund on the Age Composition of Depositors and on the Distribution of Deposit Amounts

Katalin Csaba-Kalló () and Balázs Vajai ()
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Katalin Csaba-Kalló: PhD candidate at Corvinus University of Budapest
Balázs Vajai: National Deposit Insurance Fund Hungary

Financial and Economic Review, 2017, vol. 16, issue 2, 28–39

Abstract: In the span of two years (2014 and 2015), ten credit institutions were liquidated in Hungary. Depositors were reimbursed by the National Deposit Insurance Fund (NDIF) in the total amount of HUF 219 billion. This is the first time that the depositor database of the liquidated credit institutions is subject to research. The basic features of the compensation data are presented with the assistance of descriptive statistics tools in the dimensions of the paid-out compensation amounts and the age of depositors. We confirm the hypothesis that the paid-out compensation amounts follow an extreme value distribution, more specifically, a Weibull distribution. The distribution shows that above HUF 5 million, the number of reimbursed depositors grew only moderately, while the paid-out compensation amounts increased significantly. Moreover, in making a comparison between the age distribution of reimbursed depositors and the age distribution of the Hungarian population we found that the savings deposited with the liquidated credit institutions are consistent with Modigliani’s life-cycle hypothesis.

Keywords: household saving/personal finance; consumer protection; banks (search for similar items in EconPapers)
JEL-codes: D14 D18 G21 (search for similar items in EconPapers)
Date: 2017
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