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Panic-based (non-fundamental) spikes in depositors' attention can be a source of bank fragility in theory, but separating such spikes from underlying fundamentals is challenging empirically. Using online search data, we show that during the Global Financial Crisis, UK banks facing surges in attention respond by increasing retail deposit rates, but only for instant withdrawal deposits. Exploiting variation across brands owned by the same bank (and thus sharing the same fundamentals), we find that banks respond even when surges are not justified by fundamentals. In addition, comparing onshore and offshore deposits by the same brand, we show that bank response is substantially stronger when the lack of deposit insurance and a larger presence of wholesale depositors magnifies potential losses to depositors. [ABSTRACT FROM AUTHOR]

This article analyses the need for enhanced statutory depositor protection in the mobile money/mobile banking sectors, upon banking and corporate insolvency in Sub-Saharan African (SSA) developing economies. The universal banking model, and the concepts of deposit insurance schemes, or deposit guarantee (as is commonly known in the UK/EU), are analysed and their advantages in streamlining depositor protection and the would-be impact in Sub-Saharan African developing economies' mobile banking sectors are explored. The concepts of ring-fencing and structural separation as conceptual tools that could enhance depositor protection on banking and corporate insolvency in SSA developing economies are also examined. [ABSTRACT FROM AUTHOR]

The paper deals with the analysis of the banking system of the UK. The UK banking sector is quite diverse, and at the same time oligopolistic. The UK exit from the EU is already having a negative impact on main banking indicators. Uncertainty in the banking sector and among the business community is, definitely, very high. This means that banks will have to work on potential and alternative outcomes, depending on their development. The impact of Brexit on banks and banking in the UK will be determined by both government-level arrangements and the response of individual firms to operating conditions changes. At the same time, the realities of the banking environment after the crisis of 2008—2009 mean that it is necessary not only to strengthen market discipline, but also to avoid excessive proliferation and diversification of commercial banks and concentration of the banking system. The post-crisis environment is characterized by a decrease in the number of commercial banks in the UK. However, the reduction in the number of banks does not prevent an increase in the value of the banking system’s assets and an improvement in their quality. Moreover, the paper explores the crisis of 2008—2009 impact on the functioning of the UK banking system (loans to monetary financial institutions, loans to non-monetary financial institutions, loans to non-monetary financial institutions, loans to the central government, deposits of monetary financial institutions, deposits of non-monetary financial institutions, central government deposits). For this purpose, the system of six vector models of autoregression has been constructed. The results of the simulations have shown that all variables have similar dynamics after the crisis shock, except for central government deposits. In the future, the leveling of the shock is observed for these variables starting from the fourth year. There is only an increase in central government deposits, starting from the second year after the shock The other variables do not respond to the crisis shock. [ABSTRACT FROM AUTHOR]

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This article presents an examination of bank deposits in the monetary theory of Keynes. The author argues that based on Keynes' work "A Treatise on Money," his definition of money included bank time deposits. The author examines research on various types of bank deposits and the rationale for holding money. The author discusses the role that British reserve customs played in Keynes' thoughts on money and the impact that reserves in general have on savings-deposits. The author discusses some of the difficulties associated with applying Keynes' ideas to the U.S. banking system, noting that his monetary theory was based on the design of the British system.

The article estimates the bank deposits and annual circulation of coins in Great Britain from 1868 to 1914. The article presents a discussion of existing estimates of gold coin series and the objections to them that have come about. A comparison is also presented which includes some individual point estimates created in the period. Estimates for nongold coin which were added to the gold coin series to create a total coin series are also discussed. Several tables are provided to help illustrate the study.

This study examines whether depositors benefit from bank mergers Specifically, do horizontal retail bank mergers influence the availability and interest rates of deposit services? This examination is important, as the effect of mergers on customers is a primary merger assessment criterion in the European Union and the United States. The research question is addressed by considering 57 UK banking mergers over the period 1989–2008. It is reported that different deposit services and deposits of different values face statistically insignificant levels of interest-rate change after mergers. The availability of notice deposit services for low and high levels of investment are reduced after mergers and are largely unchanged for other deposit services. It is concluded that UK depositors benefit little from bank mergers, and different types of depositor face differences in the availability of deposit services after mergers. [ABSTRACT FROM PUBLISHER]

London goldsmith-bankers' development of paper credit-money in the seventeenth century ushered in the era of modern banking. This essay argues that this innovation of paper credit-money by goldsmith-bankers was the institutionalisation of the double-ownership scheme known as trust. This trust scheme was at the centre of the custom or morality that underlay the political struggle between the Crown, landowners, and the bourgeoisie in early modern England, the struggle from which goldsmith-banking and, later, joint-stock banking developed. This double ownership remains a central feature of the present banking system. Also during the financial boom of the late twentieth century, which ended in the present world financial crisis, the trust scheme was used extensively by many financial firms, such as mutual funds, pension funds, and asset-securitisation trusts. [ABSTRACT FROM AUTHOR]

This study examines the frequency and form of deposit account interest rate change. Specifically the question of whether deposit interest rate change is synchronised with other banks or staggered at periodic intervals is addressed. Overall, evidence consistent with individual banks changing deposit interest rates in a staggered manner is recorded. Further larger banks are seen to change interest rates in a more synchronised manner than smaller banks. Lastly, when banks offer multiple deposit accounts, these products' interest rates are generally changed simultaneously by individual banks. These findings extend the current understanding of deposit interest rate change, and indicate that UK deposit interest rate setting is relatively rigid. [ABSTRACT FROM AUTHOR]

Zero–inflated Tobit models and hurdle models are developed to estimate the determinants of saving in the form of voluntary contributions to personal pension plans (PPPs) and bank deposits in Britain. These two types of saving are affected by an excessive–zeros problem. We find that, especially for saving in the form of PPP contributions, the estimates derived from both the univariate and the bivariate zero–inflated Tobit models are consistent with the hypothesis that misreporting significantly contributes to the excessive–zeros problem. However, the former model provides more realistic estimates of the determinants of the two types of saving. The univariate and bivariate hurdle models, on the other hand, give a satisfactory explanation of the positive saving, but fail to explain the zero saving. [ABSTRACT FROM AUTHOR]

This article presents a test for perfect competition in the deposit market of the UK retail-banking sector. The model employed draws from the New Economic Industrial Organisation (NEIO) technique forwarded by Hannan and Liang [1993]. The test is applied to a sample of eight UK retail banks between 1992-97. The presence of perfect competition is rejected for all banks. The empirical evidence does not support qualitative evidence of increasing competitiveness amongst UK retail banks. [ABSTRACT FROM AUTHOR]

This study examines the definition of the UK deposit savings account market. A testing procedure is used to ascertain if the law of one price and the assumption of a unified national market may or may not be rejected The existing UK and European literature on the definition of financial services markets is developed by using both product specific, interest rate data and by incorporating non-price characteristics of financial services products in the testing procedure. This study indicates that a unified UK market may be rejected for deposit saving accounts. [ABSTRACT FROM AUTHOR]

This study examines the price effects of recent US bank mergers that substantially increased local market concentration. Using the deposit interest rates that banks offer their customers as our price measure, we find that, over the 1991—94 time period, deposit rates offered by participants in substantial horizontal mergers and their local market rivals declined by a greater percentage than did deposit rates offered by banks not operating in markets in which such mergers took place. We interpret our results as evidence that these mergers led to increased market power. [ABSTRACT FROM AUTHOR]

The article examines the demand for Building Society Shares and Deposits (BSSD) in Great Britain from 1961 to 1973. It develops the BSSD demand hypothesis in general terms. The determinants of BSSD demand are identified. The article discusses the success of the empirical results over a period that includes the 1970s when estimated demand functions for other financial assets have tended to lose their stability. The results offer support for the hypothesis underlying the construction of the ultimate successful empirical specification.

The article provides information about a paper that discusses the status of bank deposits in Great Britain from 1870 to 1914. Thorough examination of every single bank in Great Britain revealed that the statistics of the British money supply during the fourth quarter of the nineteenth century are very defective. The basic contentions of this paper was the statistical coverage of the British banking system, very incomplete at first, became progressively more complete during the period under study, so that a systematic upward bias is imparted to the trend of deposits as shown by the statistics. The study also consists of several charts and tables that present the estimates of deposits in all banks, including the Bank of England. The article states that if the series of total bank money shows a relatively constant rate of growth quite unaffected by price movements, then this is not due to those component series, which can be ascertained or easily estimated. It is due to the dubious banking statistics of England and Wales.

Presents the views of the author on a proposal for the control of the money supply in Great Britain. Fluctuations in the public's demand for cash; Distortions in the process of portfolio adjustment by the banks; Instability in the relationship between the public's demand for cash and their demand for deposits.