Browsing by Subject "talletukset"

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  • Toivanen, Mervi (2008)
    Bank of Finland. Financial market report 3
    Banks advertise their offerings of fixedterm deposits with attractive interest rates. They promise to pay attractive interest on deposits held for long periods. But rising inflation lowers the real yield on fixedterm deposits.
  • (1968)
    Bank of Finland. Monthly Bulletin 42 ; 5 ; May
  • Tarkka, Juha (1995)
    Suomen Pankki. E 2
    Sisällysluettelo: 1 Introduction 11 2 Price parameters of the deposit relationship 15 2.1 Dimensions of pricing 15 2.2 The tariff function 18 3 On the historical development of demand deposit pricing 22 3.1 The classical period of deposit pricing 22 3.2 The period of regulated banking 26 3.3 The new competition 30 4 Theories of deposit account pricing 35 4.1 The free competition model 35 4.2 The monopolistic approach 36 4.3 The implicit interest question 39 4.4 The multiproduct approach 43 5 Developing the theory of deposit pricing 45 5.1 Essay I: The risk sharing explanation 46 5.2 Essay II: The tax explanation 48 5.3 Essay III: The price discrimination explanation 49 5.4 Essay IV: Switching costs 51 6 Conclusions 52 References 54 Appendix The deposit account terms offered by a Finnish bank in 1995 59
  • Toivanen, Mervi (2006)
    Bank of Finland. Financial market report 4
    The average interest rate on the deposit stock rose in 2006. Statistics do not, however, clearly indicate that banks have started to compete in terms of deposit rates. Deposit rates are developing much as in the last period of rising market interest rates. In 2006, an increase in market interest rates led, in particular, to rises in the interest rates on non-financial corporations' deposits and on households' fixed-term deposits. In contrast, interest rates on households' most common transactions accounts have not risen.
  • Savolainen, Eero (2008)
    Bank of Finland. Financial market report 2
    Developments in households' financial assets were mixed in 2007. In the first part of the year, rising share prices boosted the value of equity and fund holdings. In the second part of the year, increased uncertainty in the financial markets and falling share prices induced households to transfer a large amount of funds into deposit accounts.
  • Rantama, Jaana; Solttila, Heikki (1994)
    Bank of Finland. Bulletin 68 ; 4 ; April
  • Kauko, Karlo (2005)
    Bank of Finland Research Discussion Papers 9/2005
    This paper presents econometric analyses on the determination of bank deposit and lending rates using longitudinal Finnish data. Interest rate pass-through is very strong, possibly complete, in the case of lending rates; in the case of deposit rates the pass-through is far from complete, even in the long term.The monetary union has benefited customers by decreasing the average rate on new loans.Credit and interest rate risk premiums are clearly observable in banks' lending rates.The impact of money market rates on loan stock rates seems to have been non-linear; no obvious explanation for this phenomenon has been found. Key words: banking, interest rates JEL classification numbers: G21, E43, E44
  • Marrouch, Walid; Turk-Ariss, Rima (2012)
    BOFIT Discussion Papers 1/2012
    Published in Journal of International Financial Markets, Institutions and Money, Volume 31, Issue 1, July 2014, Pages 253-267 as Joint market power in banking: Evidence from developing countries.
    We propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component resulting from the interaction between the choke price of loans and prevailing banking structures, and a markup on deposit funding costs that captures the transformation efficiency of financial intermediation. We then test our structural specification with longitudinal data for 103 non-OECD countries and find that both the market structure under uncertainty and the deposit rate matter significantly in pricing. However, the role played by the rent-extraction share in pricing, on average, dominates funding costs in developing countries, and so underscores the importance of market structure in banks? pricing power. Keywords: intermediation, bank pricing, market structure, uncertainty, developing countries JEL codes: C33, G21, L13
  • Topi, Jukka (2008)
    Bank of Finland Research Discussion Papers 12/2008
    In this paper, I develop a model that addresses the links between banks liquidity outlook and their incentives to take credit risk. Assuming that both bank-specific liquidity shocks and credit losses are necessary to provoke bank runs, the model predicts that a bank s incentives to mitigate its credit risk by screening decrease if the probability of a bank-specific liquidity shock declines. This suggests that the benign liquidity outlook prevailing prior to the subprime crisis may have contributed to the lack of screening by banks that has been an important causal factor in the crisis.
  • Vajanne, Laura (2009)
    Bank of Finland. Bulletin 2
    Empirical evidence from the euro area indicates that retail interest rates tend to adjust slowly and incompletely to changes in market interest rates. Responses also seem to be asymmetric: deposit rates display rigidity when market rates rise, but flexibility when they fall. In addition, the available evidence for the euro area banking sector suggests there are significant differences across countries in the way banks adjust their interest rates in response to changes in corresponding market rates. The sensitivity of deposit interest rates with respect to changes in market rates can be used as an indicator for the level of competition in banking.
  • Tarkka, Juha (1989)
    Bank of Finland Research Discussion Papers 26/1989
    This paper presents a partial equilibrium model of the determination of deposit rates of interest and bank service charges in a competitive banking industry. It is shown that uncertainty regarding the future use of transactions services can cause a positive. interest rate margin on deposits, and below-cost pricing of transactions services. This contrasts with existing literature which has explained the existence of "implicit interest" as a consequence of interest rate ceilings or non-neutral taxation.
  • Bank of Finland (2018)
    Bank of Finland. Bulletin 1/2018
    The completion of Banking Union is an important objective from the perspective of financial stability. Reaching an agreement on a common deposit insurance scheme is a key component in achieving that objective. The purpose of a deposit insurance scheme is to strengthen confidence in uninterrupted access to bank deposits. The size of the Deposit Insurance Fund must be sufficient to credibly withstand possible problem situations. Banks’ deposit insurance contributions should be calibrated based on risks. This would reign in individual banks’ incentives to benefit from a common deposit insurance scheme to which all banks have contributed. Studies show that a common deposit insurance scheme would be quite resilient.
  • Vesala, Jukka (1998)
    Suomen Pankin keskustelualoitteita 18/1998
    Sisällysluettelo: The paper presents a method of measuring bank differentiation in terms of branch and ATM networks and uses the measures thus obtained to explain the pricing of deposits as well as corporate and household loans.Structural system models of demand and pricing equations are also estimated to separate network differentiation effects from collusion in loan and deposit rates.Pricing power due to network differentiation is found to exist mostly in household lending, while the benefits of differentiation are found to decrease trend-wise in all lending and deposit-taking activities. This result is in line with predictions concerning the technological transformation of services' delivery in banking. Differentiation is found to be the primary source of pricing power in lending, while collusion dominates in deposit-taking.Thus, European liberalization has greater potential to increase the contestability of the deposit market.Identified impacts of technological change imply more efficient pass-through of money market rate changes to loan and deposit rates in the future. Keywords: banking, delivery networks, differentiation, collusion
  • Krupkina, Anna; Ponomarenko, Alexey (2015)
    BOFIT Discussion Papers 32/2015
    We apply empirical modelling set-ups developed to capture the hysteresis effect in the data on deposit dollarization in a cross-section of emerging market economies. Specifically, we estimate a nonlinear relationship that determines two equilibrium levels of deposit dollarization depending on the current value of dollarization and previous episodes of sharp depreciation of the national currency over the past five years. When exchange rates are stable, convergence to a higher equilibrium level of dollarization begins when the 45–50% thresh-old of deposit dollarization is exceeded. We estimate the model for short-run dynamics of dollarization and find that the speed of convergence to the higher equilibrium implies quarterly increases of 1.2–3 percentage points in the ratio of foreign currency deposits to total deposits.
  • Hein, Eelis (1996)
    Suomen Pankki. E 6
    This study analyzes the valuation and bank risk incentive effects of deposit insurance using an approach based on options theory. While the value of deposit insurance can obviously be set under existing regulatory measures such as capital adequacy and reserve requirements, the actual and expected behaviour of the regulator is shown to exert an effect on bank risk policy, and thus, on the stability of the banking sector.The following factors are identified as possible causes of increased preference for risk on the part of banks: · an expectation that in the event of insolvency the deposit insurance will cover claim holders not otherwise initially insured; · an expectation on the part of shareholders that they are not threatened with losing their position; and · underpricing of deposit insurance premium in relation to a bank's market-valued capital adequacy. These expectations increase preference for higher risk because they remove both the need for debt holders to require any risk premium for their investment and the threat that shareholders might lose their participation in the bank's future earnings.Thus, banks are not "penalized" for taking on risk.Instead, the costs of higher risk are borne by the deposit insurer, which in Finland's case, is ultimately the government and taxpayers.A related issue is that the efficiency of the bank inspection authority seems to affect the risk-taking behaviour of banks (i.e. if a bank believes that the bank inspection authority is incapable of determining its true financial condition and actual risk exposure, it has incentive to take a riskier position). Using bank stock prices, point estimates of the value of deposit insurance are calculated for listed Finnish banks between 1987-1993.The results indicate that the value of the insurance has varied among banks and over time.Generally, charged deposit premia have been underpriced in comparison to the risk position of the studied banks.Thus, one consequence of the shakeout in Finland's banking sector appears to be that a sizable wealth transfer from the government to bank shareholders has taken place. Keywords: Banking, Deposit Insurance, Risk Incentives, Option Pricing, Regulatory Behaviour
  • Haajanen, Jyrki (1998)
    Bank of Finland. Bulletin 72 ; 8 ; August
  • Suomen Pankki (2018)
    Euro & talous 1/2018
    Pankkiunionin viimeisteleminen on rahoitusmarkkinoiden vakauden näkökulmasta tärkeä tavoite. Yhteisestä talletussuojasta sopiminen on keskeinen osa tavoitteen saavuttamista. Talletussuojalla vahvistetaan luottamus pankkitalletusten jatkuvaan saatavuuteen. Talletussuojarahaston tulee olla riittävän suuri kooltaan, jotta se kestää mahdolliset ongelmatilanteet uskottavasti. Pankeilta kerättävät talletussuojamaksut tulisi mitoittaa riskiperusteisesti. Näin hallittaisiin pankkien kannustimia hyötyä yhteisesti maksetusta talletussuojasta. Yhteinen talletussuoja osoittautuu tarkastellun tutkimuksen valossa varsin kestäväksi.
  • Haavio, Markus; Mendicino, Caterina; Punzi, Maria Teresa (2013)
    Bank of Finland Research Discussion Papers 35/2013
    Published in Applied Economics Letters, Volume 21, Issue 6, April 2014, Pages 407-412 ;
    This article empirically studies the linkages between financial variable downturns and economic recessions. We present evidence that real asset prices tend to lead real cycles, while loan-to-GDP and loan-to-deposit ratios lag them. Using a probit analysis, we document that downturns in real asset prices, particularly real house prices, are useful leading indicators of economic recessions. Keywords: macro-financial linkages; turning point analysis; probit models JEL classification numbers: C53, E32, E37, G17
  • Ponomarenko, Alexey; Solovyeva, Alexandra; Vasilieva, Elena (2011)
    BOFIT Discussion Papers 36/2011
    Published in Macroeconomics and Finance in Emerging Market Economies, Vol. 6, No. 2, 221–243 (2013)
    We review some aspects of financial dollarization in Russia, applying the main relevant theories to analyze the dynamics of several dollarization indicators. An econometric model of the short run dynamics of deposit and loan dollarization is estimated for the last decade. We find that ruble appreciation was the main driver of the de-dollarization that occurred then and of the later episode of renewed dollarization. We estimate the overall (and sector-al) currency mismatches of the Russian economy. The results show a gradual improvement of the net foreign currency position of the public sector, where we have seen significant accumulation of international reserves by the Bank of Russia and repayment of government debt. Evidence is also presented for the significant currency risk vulnerability of the nonbanking private sector. Several existing empirical studies are examined in order to assess the growth losses of the Russian economy following the crisis of 2008, which was linked with the financial dollarization. Keywords: Financial dollarization, currency mismatch, balance sheet effects, Russia. JEL classification: E44, F34, G32.
  • Sepp, Urmas (1995)