0
Determinants of Bank Deposits of
Households in Estonia
Kadri Lenk, 26.11.2013
Household's stock of deposit and interest rates
2000 - present
5.0%

6000

4.5%
5000

4.0%
3.5%

4000

3.0%
2.5%

3000

2....
What motivates households to deposit?
Variables









Interest rates
Consumer confidence indicator
Unemployment
Monthly gross salary
Inflation
Stock o...
Methodology


Regression analysis



Three time periods




2001 – 2012
2001 – 2009
2009 – 2012



Do the variables ...
Results
Conclusions


Interest rates don’t interest




Unemployment reflects uncertainty








In uncertain times, house...
Thanks!
Upcoming SlideShare
Loading in...5
×

Kadri Lenk "Determinants of Bank Deposits of Households in Estonia" (BeWise ja AS Balti Kell Üliõpilastööde konkursi finaaltöö)

118

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
118
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Kadri Lenk "Determinants of Bank Deposits of Households in Estonia" (BeWise ja AS Balti Kell Üliõpilastööde konkursi finaaltöö)"

  1. 1. Determinants of Bank Deposits of Households in Estonia Kadri Lenk, 26.11.2013
  2. 2. Household's stock of deposit and interest rates 2000 - present 5.0% 6000 4.5% 5000 4.0% 3.5% 4000 3.0% 2.5% 3000 2.0% 2000 1.5% 1.0% 1000 0.5% 0.0% 0 Stock of deposit Average deposit interest rate
  3. 3. What motivates households to deposit?
  4. 4. Variables        Interest rates Consumer confidence indicator Unemployment Monthly gross salary Inflation Stock of housing loans and consumer credits Dummy variable
  5. 5. Methodology  Regression analysis  Three time periods    2001 – 2012 2001 – 2009 2009 – 2012  Do the variables appear with a lag?  Time and demand deposits analysed separately
  6. 6. Results
  7. 7. Conclusions  Interest rates don’t interest   Unemployment reflects uncertainty     In uncertain times, households save Inflation effect comes with 4-6 month lag   Dummy variable affects demand deposits Negative effect on time deposits Positive effect on demand deposits Higher salary = higher saving Loans and saving’s relation changed over time   Positive correlation before 2009 Negative correlation after 2009
  8. 8. Thanks!
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×