High value household deposits in the Eurozone: single post-crisis approach vs. national facts

The article investigates the impact that the EU post-crisis regulations on high value deposits have on credit institutions performing in 13 monetary union member states. It analyses the nature of large deposits as well as their popularity in individual countries and identifies the common determinants of their occurrence. It uses the Eurosystem Household Finance and Consumption Survey household-level data relating to household’s size, wealth, investment attitude, reasons for saving, as well as the person’s age, level of education completed, marital status, labour status, and gender. The analysis of household characteristics which foster the occurrence of large deposits is conducted on the basis of a logit model. The main finding is that the significance of large deposits for the funding of credit institutions cannot be assumed as homogeneous in the group of analysed countries. Their occurrence is determined by certain factors relating to households’ wealth and socio-demographic characteristics. Moreover, in some member states these factors tend to indicate a rather stable than unstable nature of those deposits. Thus, the precise post-crisis regulation on large deposits may appear as ineffective in the group of heterogeneous countries and seems to unnecessarily constrain the reported stability of funding, especially of institutions in Cyprus and Luxembourg.