Russian banks' private deposit interest rates and market discipline
Peresetsky, A.A.; Karminsky, A.M.; Golovan, S.V. (19.02.2007)
Numero
2/2007Julkaisija
Bank of Finland
2007
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408072178Tiivistelmä
This paper examines the extent to which the observed diversity of private deposit interest rates in Russia is explained by bank financial indicators.We also test for whether the introduction of the bank deposit insurance scheme in 2005 affected deposit interest rates.Our results suggest market discipline in the Russian banking system involves Russian depositors demanding higher deposit interest rates from banks with risky financial policies.This discipline seems stronger than in developed countries.Our study suggests also that the risks taken by banks increased after introducing the deposit insurance.Key words: banking, deposit interest rates, moral hazard, deposit insurance, Russia JEL codes: D43, E53, G21, P34
Julkaisuhuomautus
Published in Russian in Economics and Mathematical Methods (ЭКОНОМИКА И МАТЕМАТИЧЕСКИЕ МЕТОДЫ), v. 43, n.1, 2007, pp. 3-15 as "Deposit interest rates in the Russian banks, market discipline and deposit insurance system" (ПРОЦЕНТНЫЕ СТАВКИ РОССИЙСКИХ БАНКОВ. РЫНОЧНАЯ ДИСЦИПЛИНА И СТРАХОВАНИЕ ДЕПОЗИТОВ)