The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

The Distortive Effects of Too Big To Fail : Evidence from the Danish Market for Retail Deposits. / Iyer, Rajkamal; Jensen, Thais Lærkholm; Johannesen, Niels; Sheridan, Adam Francis McSorley.

In: The Review of Financial Studies, Vol. 32, No. 12, 15.03.2019, p. 4653–4695.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Iyer, R, Jensen, TL, Johannesen, N & Sheridan, AFM 2019, 'The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits', The Review of Financial Studies, vol. 32, no. 12, pp. 4653–4695. https://doi.org/10.1093/rfs/hhz037

APA

Iyer, R., Jensen, T. L., Johannesen, N., & Sheridan, A. F. M. (2019). The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits. The Review of Financial Studies, 32(12), 4653–4695. https://doi.org/10.1093/rfs/hhz037

Vancouver

Iyer R, Jensen TL, Johannesen N, Sheridan AFM. The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits. The Review of Financial Studies. 2019 Mar 15;32(12):4653–4695. https://doi.org/10.1093/rfs/hhz037

Author

Iyer, Rajkamal ; Jensen, Thais Lærkholm ; Johannesen, Niels ; Sheridan, Adam Francis McSorley. / The Distortive Effects of Too Big To Fail : Evidence from the Danish Market for Retail Deposits. In: The Review of Financial Studies. 2019 ; Vol. 32, No. 12. pp. 4653–4695.

Bibtex

@article{e6ff19d8fdeb4445b71788f602ed8eaa,
title = "The Distortive Effects of Too Big To Fail: Evidence from the Danish Market for Retail Deposits",
abstract = "We study the impact of too-big-to-fail (TBTF) guarantees on the market for retail deposits. Exploiting information about all personal deposit accounts in Denmark and salient changes to the deposit insurance limit, we provide evidence that systemically important banks successfully retain and attract uninsured deposits in a crisis at the expense of other banks even as they differentially lower their interest rates. The funding shock suffered by nonsystemic banks causes a decrease in their lending. The results point to the distortive effects of TBTF guarantees in the market for retail deposits.",
author = "Rajkamal Iyer and Jensen, {Thais L{\ae}rkholm} and Niels Johannesen and Sheridan, {Adam Francis McSorley}",
year = "2019",
month = mar,
day = "15",
doi = "10.1093/rfs/hhz037",
language = "English",
volume = "32",
pages = "4653–4695",
journal = "The Review of Financial Studies",
issn = "0893-9454",
publisher = "Oxford University Press",
number = "12",

}

RIS

TY - JOUR

T1 - The Distortive Effects of Too Big To Fail

T2 - Evidence from the Danish Market for Retail Deposits

AU - Iyer, Rajkamal

AU - Jensen, Thais Lærkholm

AU - Johannesen, Niels

AU - Sheridan, Adam Francis McSorley

PY - 2019/3/15

Y1 - 2019/3/15

N2 - We study the impact of too-big-to-fail (TBTF) guarantees on the market for retail deposits. Exploiting information about all personal deposit accounts in Denmark and salient changes to the deposit insurance limit, we provide evidence that systemically important banks successfully retain and attract uninsured deposits in a crisis at the expense of other banks even as they differentially lower their interest rates. The funding shock suffered by nonsystemic banks causes a decrease in their lending. The results point to the distortive effects of TBTF guarantees in the market for retail deposits.

AB - We study the impact of too-big-to-fail (TBTF) guarantees on the market for retail deposits. Exploiting information about all personal deposit accounts in Denmark and salient changes to the deposit insurance limit, we provide evidence that systemically important banks successfully retain and attract uninsured deposits in a crisis at the expense of other banks even as they differentially lower their interest rates. The funding shock suffered by nonsystemic banks causes a decrease in their lending. The results point to the distortive effects of TBTF guarantees in the market for retail deposits.

U2 - 10.1093/rfs/hhz037

DO - 10.1093/rfs/hhz037

M3 - Journal article

VL - 32

SP - 4653

EP - 4695

JO - The Review of Financial Studies

JF - The Review of Financial Studies

SN - 0893-9454

IS - 12

ER -

ID: 215920800