The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits

• 成果类型: Article
• 署名作者: Iyer, Rajkamal; Laerkholm Jensen, Thais; Johannesen, Niels; Sheridan, Adam
• 署名单位: Imperial College London; University of Copenhagen
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz037
• 发表日期: 2019
• 页码: 4653
• 关键词: insurance; RISK

摘要

We study the impact of too-big-to-fail (TBTF) guarantees on the market for retail deposits. Exploiting information about all personal deposit accounts in Denmark and salient changes to the deposit insurance limit, we provide evidence that systemically important banks successfully retain and attract uninsured deposits in a crisis at the expense of other banks even as they differentially lower their interest rates. The funding shock suffered by nonsystemic banks causes a decrease in their lending. The results point to the distortive effects of TBTF guarantees in the market for retail deposits.