This study investigates the growth of Finnish deposit banks over the period 1980-1993.We examine the growth in balance sheets, lending and deposits of the public as well as major changes in the balance sheet structure.The focus of the study is first on the overall banking industry and second on the commercial, savings and cooperative banks as groups, including a separate treatment of the largest commercial banks.The study ends with a brief comparison of the Nordic countries.Also included is a discussion of changes that have occurred in the banking environment, but the emphasis is on the effects of bank-specific microeconomic factors on the rapid acceleration in the growth of bank lending and on the heating up of competition for market share, which took place after lending rates were deregulated and foreign exchange regulations eased.The micro factors examined are the change in banks' risk profile during the period of rapid growth as well as the various incentives behind the growth and competition for market share.To be sure, changes in the banking environment and macroeconomic developments have played a role in fomenting the banks' profitability crisis in the beginning of the 1990s, but the main reasons for the crisis can be found in the banks' strategic choices.

In 2009, there was a considerable shift in households deposits, from fixed-term to transaction accounts. The decline in deposit interest rates has eroded the popularity of fixed-term deposits. Investment funds have since spring 2009 attracted a considerable amount of new capital.

1n this paper the theory af nonlinear multiproduct pricing is applied to the problem of determining the terms af liquid bank deposits such as cheque accounts. The prafit maximizing interest rate and service charge schedules are characterized within a madel of a manopolybank with a heterogeneous clientele. It is shown that the practice of "implicit interest", meaning below-cost pricing of payment services parallel with large interest margins on deposits, may well be part of the optimal price discrimination strategy. It is also shown that necessary conditians for that kind of cross subsidization to be optimal exist in an inventary theoretic madel of the demand for cheque account services. It is argued that the failure to take (second-degree) price discrimination into account invalidates much of the previous research on demand deposit pricing.

This paper tests for the existence of market power in banking, using data on demand deposit rates of households and corresponding market rates in five euro area countries. An implicit measure for market power is based on a partial adjustment model that also allows for an asymmetric response of deposit rates to changes in market rates. The period covers the ten years since introduction of the euro. The analysis indicates that banks are exercising major market power within the euro area. In addition to general sluggishness, bank deposit rates reactions are clearly asymmetric: flexible when market rates are decreasing and rigid when rates are increasing. The degree of asymmetric behaviour can be interpreted as a further indication of the market power banks exercise. Despite country differences, a general pattern of interest rate adjustment in demand deposit pricing is observable.

Suurin osa talletuksista on kiinteäkorkoisia tai sidottuja pankkien omiin viitekorkoihin. Kotitalouksien talletusten keskikorkoja nostavat likvidit sijoitus- ja tuottotilit. Epävarmuus on lisännyt lyhyiden määräaikaistalletusten suosiota.

SISISÄLLYS 1 JOHDANTO 7 2 RAHOITUKSEN MÄÄRIEN KEHITYS ERI MARKKINOILLA 8 2.1 Rahoituslaitokset ja valtio • 8 2.1.1 Luotonanto yleisölle 8 2.1.2 Talletuspankkien rahoituksen lähteet 10 2.1.3 Joukkovelkakirjalainat ja muut rahoituksen lähteet 12 2.2 Hallinnollisten markkinoiden ulkopuoliset rahoitusvirrat 14 2.2.1 Yleisösektorin myöntämät luotot 15 2.2.2 Yleisösektorille myönnetty rahoitus 17 3 RAHOITUSMARKKINOI'DEN KORKOJÄRJESTELMÄ 22 3.1 Korkojärjestelmän yleiset piirteet 22 3.2 Hallinnolliset korot 27 3.2.1 Talletuspankkien anto- ja ottolainauskorot 27 3.2.2 Kotimaisten obligaatioiden korot 30 3.2.3 Muiden luottolaitosten antolainauskorot 33 3.3 Kotimaiset vapaan koronmuodostuksen markkinat 34 3.4 Ulkomaisten korkojen yhteys kotimaisiin korkoihin 37 3.4.1 Suomen rahoitusmarkkinoilla vallinneiden korkojen taso kansainvälisessä vertailussa 3.4.2 Ulkomaisen ja kotimaisen korkotason välisen eron merkitys talouden tasapainolle LÄHDELUETTELO LIITE Marginaalikorko suljetussa taloudessa LI ITEKUVIOT