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Experiences of the National Deposit Insurance Fund on the Age Composition of Depositors and on the Distribution of Deposit Amounts

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Listed:
  • Katalin Csaba-Kalló

    (PhD candidate at Corvinus University of Budapest)

  • Balázs Vajai

    (National Deposit Insurance Fund Hungary)

Abstract

In the span of two years (2014 and 2015), ten credit institutions were liquidated in Hungary. Depositors were reimbursed by the National Deposit Insurance Fund (NDIF) in the total amount of HUF 219 billion. This is the first time that the depositor database of the liquidated credit institutions is subject to research. The basic features of the compensation data are presented with the assistance of descriptive statistics tools in the dimensions of the paid-out compensation amounts and the age of depositors. We confirm the hypothesis that the paid-out compensation amounts follow an extreme value distribution, more specifically, a Weibull distribution. The distribution shows that above HUF 5 million, the number of reimbursed depositors grew only moderately, while the paid-out compensation amounts increased significantly. Moreover, in making a comparison between the age distribution of reimbursed depositors and the age distribution of the Hungarian population we found that the savings deposited with the liquidated credit institutions are consistent with Modigliani’s life-cycle hypothesis.

Suggested Citation

  • Katalin Csaba-Kalló & Balázs Vajai, 2017. "Experiences of the National Deposit Insurance Fund on the Age Composition of Depositors and on the Distribution of Deposit Amounts," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 16(2), pages 28-39.
    • Handle: RePEc:mnb:finrev:v:16:y:2017:i:2:p:28-39
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    References listed on IDEAS

    as
    1. Modigliani, Franco, 1986. "Life Cycle, Individual Thrift, and the Wealth of Nations," American Economic Review, American Economic Association, vol. 76(3), pages 297-313, June.
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    More about this item

    Keywords

    household saving/personal finance; consumer protection; banks;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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