---
_id: '4873'
abstract:
- lang: eng
  text: 'Banks face a ''behavioralization'' of their balance sheets since deposit
    funding increasingly consists of non-maturing deposits with uncertain cash flows
    exposing banks to asset liability (ALM) risk. Thus, this study examines the behavior
    of banks’ retail customers regarding non-maturing deposits. Our unique sample
    comprises the contract and cash flow data for 2.2 million individual contracts
    from 1991 to 2010. We find that contractual rewards, i.e., qualified interest
    payments, and government subsidies, effectively stabilize saving behavior and
    thus bank funding. The probability of an early deposit withdrawal decreases by
    approximately 40%, and cash flow volatility drops by about 25%. Our findings provide
    important insights for banks using pricing incentives to steer desired saving
    patterns for their non-maturing deposit portfolios. Finally, these results are
    informative regarding the bank liquidity regulations (Basel III) concerning the
    stability of deposits and the minimum requirements for risk management (European
    Commission DIRECTIVE 2006/48/EC). '
article_type: original
author:
- first_name: Tobias
  full_name: Schlueter, Tobias
  last_name: Schlueter
- first_name: Sönke
  full_name: Sievers, Sönke
  id: '46447'
  last_name: Sievers
- first_name: Thomas
  full_name: Hartmann-Wendels, Thomas
  last_name: Hartmann-Wendels
citation:
  ama: Schlueter T, Sievers S, Hartmann-Wendels T. Bank funding stability, pricing
    strategies and the guidance of depositors. <i>Journal of Banking &#38; Finance
    (VHB-JOURQUAL 4 Ranking A)</i>. 2015;51:43-61. doi:<a href="https://doi.org/10.2139/ssrn.2001449">10.2139/ssrn.2001449</a>
  apa: Schlueter, T., Sievers, S., &#38; Hartmann-Wendels, T. (2015). Bank funding
    stability, pricing strategies and the guidance of depositors. <i>Journal of Banking
    &#38; Finance (VHB-JOURQUAL 4 Ranking A)</i>, <i>51</i>, 43–61. <a href="https://doi.org/10.2139/ssrn.2001449">https://doi.org/10.2139/ssrn.2001449</a>
  bibtex: '@article{Schlueter_Sievers_Hartmann-Wendels_2015, title={Bank funding stability,
    pricing strategies and the guidance of depositors}, volume={51}, DOI={<a href="https://doi.org/10.2139/ssrn.2001449">10.2139/ssrn.2001449</a>},
    journal={Journal of Banking &#38; Finance (VHB-JOURQUAL 4 Ranking A)}, author={Schlueter,
    Tobias and Sievers, Sönke and Hartmann-Wendels, Thomas}, year={2015}, pages={43–61}
    }'
  chicago: 'Schlueter, Tobias, Sönke Sievers, and Thomas Hartmann-Wendels. “Bank Funding
    Stability, Pricing Strategies and the Guidance of Depositors.” <i>Journal of Banking
    &#38; Finance (VHB-JOURQUAL 4 Ranking A)</i> 51 (2015): 43–61. <a href="https://doi.org/10.2139/ssrn.2001449">https://doi.org/10.2139/ssrn.2001449</a>.'
  ieee: 'T. Schlueter, S. Sievers, and T. Hartmann-Wendels, “Bank funding stability,
    pricing strategies and the guidance of depositors,” <i>Journal of Banking &#38;
    Finance (VHB-JOURQUAL 4 Ranking A)</i>, vol. 51, pp. 43–61, 2015, doi: <a href="https://doi.org/10.2139/ssrn.2001449">10.2139/ssrn.2001449</a>.'
  mla: Schlueter, Tobias, et al. “Bank Funding Stability, Pricing Strategies and the
    Guidance of Depositors.” <i>Journal of Banking &#38; Finance (VHB-JOURQUAL 4 Ranking
    A)</i>, vol. 51, 2015, pp. 43–61, doi:<a href="https://doi.org/10.2139/ssrn.2001449">10.2139/ssrn.2001449</a>.
  short: T. Schlueter, S. Sievers, T. Hartmann-Wendels, Journal of Banking &#38; Finance
    (VHB-JOURQUAL 4 Ranking A) 51 (2015) 43–61.
date_created: 2018-10-26T07:08:32Z
date_updated: 2026-04-09T08:14:22Z
department:
- _id: '275'
doi: 10.2139/ssrn.2001449
intvolume: '        51'
jel:
- G01
- G21
- G28
keyword:
- retail saving behavior
- non-maturing deposits
- deposit funding
- contractual rewards
- interest rate bonus
- saving persistence
- cash flow volatility
language:
- iso: eng
main_file_link:
- url: https://www.sciencedirect.com/science/article/pii/S0378426614003380
page: 43-61
publication: Journal of Banking & Finance (VHB-JOURQUAL 4 Ranking A)
publication_status: published
quality_controlled: '1'
status: public
title: Bank funding stability, pricing strategies and the guidance of depositors
type: journal_article
user_id: '115848'
volume: 51
year: '2015'
...