Exploiting old customers and attracting new ones: The case of bank deposit pricing

Autor:	Timothy H. Hannan, Santiago Carbo-Valverde, Francisco Rodriguez-Fernandez
Rok vydání:	2011
Předmět:	Economics and Econometrics Fixed deposit media_common.quotation_subject Economics Monetary economics International economics Bank deposit Finance Banking industry Interest rate media_common
Zdroj:	European Economic Review. 55:903-915
ISSN:	0014-2921
Popis:	Recent theoretical contributions suggest that deposit interest rates should be higher in geographic areas characterized by greater in-migration and lower for depositors at banks with greater shares of existing (or so-called “locked-in”) depositors. These hypotheses are tested using a rich data set obtained for the Spanish banking industry. Results confirm that, all else equal, banks offer higher deposit rates in territories characterized by greater in-migration, and also that they tend to offer lower rates, the larger the number of their locked-in depositors. These findings confirm the existence of the trade-off between exploiting old customers and attracting new ones.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::24c8a9133c91052ffb1d9cfe6ec2c3bd https://doi.org/10.1016/j.euroecorev.2011.02.001 Zobrazit plný text záznamu Full Text from ScienceDirect