Decision-Making Delegation in Banks

• 成果类型: Article
• 署名作者: Dlugosz, Jennifer; Gam, Yong Kyu; Gopalan, Radhakrishnan; Skrastins, Janis
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; University College Dublin; Washington University (WUSTL)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4856
• 发表日期: 2024
• 关键词: banks; Organizational structure; branch banking

摘要

Using natural disasters as shocks to local economies, we document that a bank branch's ability to set deposit rates locally has real effects. Following disasters, branches with rates set locally increase deposit rates more and experience higher deposit volumes in affected counties. Consistent with imperfect insurance from internal capital markets, banks with more branches setting rates locally relatively expand mortgage lending in affected counties. House prices recover faster in local areas where more branches' rates are set locally.