Deposit Insurance and Depositor Behavior: Evidence from Colombia
Nicolás de Roux () and
Documentos CEDE from Universidad de los Andes - CEDE
We exploit a large and unexpected increase in the Colombian insurance threshold to investigate how depositors respond to higher deposit insurance. Monthly depositor-level records from a major bank show that the level and growth rate of deposits rise with higher coverage. Individuals who were fully and nearly-fully insured before the policy drive this increment. A survey of bank customers indicates that higher deposits were replenished by lowering cash and other assets. We estimate an elasticity of deposit growth to deposit insurance of 0.4%, and fi nd a similar fi gure in the United States by leveraging the 2008 increase in deposit insurance.
Keywords: Banking; Financial Regulation; Household Saving. (search for similar items in EconPapers)
JEL-codes: G21 G28 G51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cba, nep-fdg and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:col:000089:018800
Access Statistics for this paper
More papers in Documentos CEDE from Universidad de los Andes - CEDE
Bibliographic data for series maintained by Universidad De Los Andes-Cede ().