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

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  • 1. Determinants of Bank Deposits of Households in Estonia Kadri Lenk, 26.11.2013
  • 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. What motivates households to deposit?
  • 4. Variables        Interest rates Consumer confidence indicator Unemployment Monthly gross salary Inflation Stock of housing loans and consumer credits Dummy variable
  • 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. Results
  • 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. Thanks!

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