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Active depositors

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  • Homanen, Mikael

Abstract

Do households react to negative non-financial and climate related information about their financial institutions? Using branch level data for the United States, I show that banks that financed the highly controversial Dakota Access Pipeline experienced significant decreases in deposit growth. These effects were greater in localities with higher support for the protests and higher environmental awareness. Data suggests that locally oriented banks were among the main beneficiaries of this depositor movement. Overall, this paper adds significantly to our understanding on the non-financial preferences of household financial investment decisions and climate finance debate.

Suggested Citation

  • Homanen, Mikael, 2022. "Active depositors," Journal of Banking & Finance, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:jbfina:v:136:y:2022:i:c:s0378426622000176
    DOI: 10.1016/j.jbankfin.2022.106417
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    Cited by:

    1. Matteo Crosignani & Hanh Le, 2023. "Stakeholders’ Aversion to Inequality and Bank Lending to Minorities," Staff Reports 1079, Federal Reserve Bank of New York.

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    More about this item

    Keywords

    Depositor discipline; Bank scandals; Environment;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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