What Affects the Interest Rate on Deposit From Households?

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F19%3A10242811" target="_blank" >RIV/61989100:27510/19:10242811 - isvavai.cz</a>

Result on the web

<a href="http://mnje.com/en/vol-15-no-2" target="_blank" >http://mnje.com/en/vol-15-no-2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/1800-5845/2019.15-2.4" target="_blank" >10.14254/1800-5845/2019.15-2.4</a>

Result language

angličtina

Original language name

What Affects the Interest Rate on Deposit From Households?

Original language description

The contribution aim to identify the factors influencing the level of the interest rate in the conditions of the Slovak banking sector. The analysis itself is carried out using a correlation and regression analysis based on quarterly data from the database of National Bank of Slovakia for the period from 1st quarter 2006 to the 4th quarter of 2017. The research has been motivated by the three research questions about the impact of the selected market and intra-bank variables (Does the growth of market concentration lead to a decrease in deposits interest rates? Does the interest rate on the interbank market have a positive impact on deposits interest rates? Does the growth of liquidity lead to a decrease in deposits interest rates?). Based on the results of regression model we have found out, that the increasing concentration, declining interbank interest rate, disinflation, increasing bank capitalisation and declining bank liquidity have a significant impact on the decline in interest rates on deposit products under the conditions of the Slovak banking sector. This support the Structure-conductperformance hypothesis which states that higher market concertation leads to less favourable pricing to customers. We have also found out, that highly capitalised banking sector has a lower pass-through for deposits, which means that the pricing behaviour of this banking sector is least tied to market development. So when the market rate decrease, the deposit rate of highly capitalised banking sector must also decrease and this decrease must be higher than the decrease in market rate.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Montenegrin Journal of Economics

ISSN

1800-5845

e-ISSN

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Volume of the periodical

15

Issue of the periodical within the volume

2

Country of publishing house

ME - MONTENEGRO

Number of pages

17

Pages from-to

41-57

UT code for WoS article

000485971400004

EID of the result in the Scopus database

2-s2.0-85067941043