TY - JOUR
T1 - COVID-19, bank deposits, and lending
AU - Dursun-de Neef, H. Özlem
AU - Schandlbauer, Alexander
N1 - Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2022/9
Y1 - 2022/9
N2 - During the pandemic, households accumulated savings in their deposit accounts as a result of a reduction in their spending, which occurred due to the restrictions on their mobility. This led to a significant increase in bank deposits for banks located in counties with a larger reduction in spending. Banks, in turn, used these additional funds to issue more real estate loans. This implies that policies that might affect household spending would lead to changes in the volume of deposits in the banking system, which have consequences on banks’ loan supply.
AB - During the pandemic, households accumulated savings in their deposit accounts as a result of a reduction in their spending, which occurred due to the restrictions on their mobility. This led to a significant increase in bank deposits for banks located in counties with a larger reduction in spending. Banks, in turn, used these additional funds to issue more real estate loans. This implies that policies that might affect household spending would lead to changes in the volume of deposits in the banking system, which have consequences on banks’ loan supply.
KW - Bank deposits
KW - Bank lending
KW - COVID-19 pandemic
U2 - 10.1016/j.jempfin.2022.05.003
DO - 10.1016/j.jempfin.2022.05.003
M3 - Journal article
C2 - 35993089
AN - SCOPUS:85131561721
VL - 68
SP - 20
EP - 33
JO - Journal of Empirical Finance
JF - Journal of Empirical Finance
SN - 0927-5398
ER -