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Lookup NU author(s): Dr Robert AndersonORCiD,
Professor Robert Hudson
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
Do banks extract rent from depositors who hold older deposit accounts? This study addresses this question using product level data from the UK instant access (branch based) deposit market. In this context, two research questions related to the conditions necessary for differential pricing for existing and new customers are assessed. Specifically whether more mature deposit accounts have lower interest rates and does the newest deposit account in a firm portfolio pay an interest rate premium? Empirical support is provided for both questions, with interest rate setting for new and existing deposit accounts also found to be influenced by firm type. (C) 2014 Elsevier B.V. All rights reserved.
Author(s): Anderson RDJ, Ashton JK, Hudson RS
Publication type: Article
Publication status: Published
Journal: Journal of International Financial Markets, Institutions and Money
Print publication date: 01/07/2014
Online publication date: 03/04/2014
Acceptance date: 26/03/2014
Date deposited: 17/12/2014
ISSN (print): 1042-4431
ISSN (electronic): 1873-0612
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