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Essays On Bank Deposit Flows And Deposit Rates As A Market Disciplining Mechanism, Prateek Sharma
Essays On Bank Deposit Flows And Deposit Rates As A Market Disciplining Mechanism, Prateek Sharma
LSU Doctoral Dissertations
Deposits are the single largest source of funding for banks and are thus key to the stability of the banking system. Deposit flows and deposit rates are two mechanisms through which depositors discipline banks from excessive risk taking thus keeping the banking system stable.
In Chapter 1, I examine aggregate deposit inflows, outflows, and the reallocation of deposits in the banking system to further our understanding of banking stability. I find that on average deposit inflows are nearly three times larger and twice more volatile than outflows. Deposit flows vary with business cycles and market conditions, across deposit types, and …