A25

Deposit market concentration and monetary transmission: evidence from the euro area

Retrieved on: 
Sunday, February 4, 2024
Neumark, American Economic Journal, Paper, A18, A21, Money, A4, Financial crisis, International, A5, A1, Exercise, Timothy, A14, Monetary policy, IRF, Interest rate, Economy, Quarterly Journal of Economics, NII, A8, Policy, HICP, MMF, Control, Statistics, Series, ECB, DNB, Index (economics), Finance, Section 3, GDP, History, American Economic Review, De Nederlandsche Bank, Rigidity, XB, Habit, Website, Federal funds, Social science, A11, 95.1 FM, IMF, MPS, A9, Credit, University of Amsterdam, Wang, A26, HHI, European Economic Review, Reproduction, Shock, University, Journal of Political Economy, Central bank, A30, Journal of Monetary Economics, Interval (mathematics), A25, G21, Politics, Auerbach, Silvana Tenreyro, XT, Research Papers in Economics, Causality, Deposit, Yb, A27, Time series, Dynamics, Literature, Hey, SSI, Interpolation, O'Driscoll (surname), BSI, A23, United, Domestic, European Central Bank, VAR, A28, Rigid transformation, A6, OIS, Role, PDF, Research, Feedback, The Journal of Finance, A15, A17, NFC, A22, E43, DSGE, Quarterly Journal, E52, MIR, Appendix, A10, Information, Surface finishing

Abstract

Key Points: 
    • Abstract
      I study the transmission of monetary policy to deposit rates in the euro area with a
      focus on asymmetries and the role of banking sector concentration.
    • Moreover, the
      gap between deposit rates across euro area member states - despite being exposed to the same
      key ECB interest rates - has widened.
    • This begs the question whether deposit rates are more
      sluggish in response to both policy rate increases and cuts, and what factors might influence the
      transmission of monetary policy to deposit rates.
    • Whether banks are indeed able to adjust deposit rates asymmetrically to positive and
      negative changes in policy rates could thus well depend on how much market power they hold
      in the deposit market.
    • Arguing that market power increases in the degree of market concentration,
      I further consider whether more concentrated banking sectors set rates (more) asymmetrically.
    • The response of deposit rates in banking sectors with an average degree of concentration does
      not appear asymmetric.
    • The degree of market concentration is often pointed at, but recent evidence
      for the euro area is scarce.
    • In this paper, I provide empirical evidence on the asymmetric response of deposit rates to
      monetary policy, and relate this to the degree of concentration within a country?s banking sector.
    • Both papers
      provide empirical evidence based on US deposit markets showing that deposit rates respond
      more rigidly to upward changes in market rates than downward changes, especially so in more
      concentrated markets.
    • Recent research on euro area deposit markets,
      instead, has focused more on the transmission of negative policy rates (see e.g.
    • Whether banks are able to set deposit rates that materially differ from policy rates is affected

      ECB Working Paper Series No 2896

      4

      by market concentration: market power is assumed to increase in the degree of concentration in
      the banking sector.

    • Concentration thus appears to matter for how quickly ECB monetary policy has
      been transmitted to deposit rates across the euro area.
    • Banks thus have a motive to be
      rigid in adjusting deposit rates to a ?positive? monetary policy shock.
    • While customers are generally (and potentially rationally) inattentive, swift and substantial
      nominal deposit rate declines may trigger deposit outflows.
    • relative deposit rate = deposit rate - short term rate
      The inverse of the wedge, the relative deposit rate will allow us to see more clearly how
      the deposit rate evolves in comparison to the short-term rate.
    • This then translates to (more
      pronounced) effects on the transmission of policy to the deposit wedge, reinforcing the asymmetry discussed before.
    • More concentration would mean more rigid deposit rates (and thus an
      increase in the deposit wedge) in case of positive surprises, and more flexible deposit rates (and
      thus a decrease in the deposit wedge) in case of negative surprises (see also e.g.
    • I add an identical
      altered-linex adjustment cost for deposit rates, to capture the upward rigidity and downward
      flexibility of deposit rates as well.
    • As discussed
      previously, the deposit rate is particularly rigid in case of a positive shock, illustrating the dividend smoothing motive and bank market power.
    • Without the asymmetric adjustment cost,
      the response of the deposit rates to positive and negative changes in policy would have been
      symmetric.
    • This appears a reasonable assumption
      in general, as market concentration or market shares are slow-moving concepts.
    • 3

      Methods and data

      I study the dynamic response to an unexpected change in monetary policy on deposit rates
      in different countries in the euro area.

    • deposit rate - short-term rate), which for the sake of
      brevity I will refer to as the ?relative deposit rate?.
    • Positive IRFs for the relative deposit rate imply that
      the deposit rate has increased by more than the short-term rate, narrowing the wedge between
      the short-term rate and the deposit rate.
    • 0
      ?2

      ?2
      ?4
      ?6

      ?4
      4

      8

      12

      4

      Months

      8

      12

      Months

      Figure 9: NFC rate response - linear combination of ?0 and ?1

      Relative deposit rate at 1 month

      Relative deposit rate at 4 months

      0.0

      0
      ?1

      p.p.

    • 0
      0

      ?2
      ?1
      ?4
      4

      8

      12

      4

      8

      Months

      12

      Months

      Figure 12: NFC rate response - linear combination of ?0 and ?1

      Relative deposit rate at 1 month

      Relative deposit rate at 4 months
      2.0

      1.5

      p.p.

    • And, (2) how quickly
      households and NFCs learn about changes in monetary policy, via the deposit rate, may vary
      across the monetary union.
    • ?0 , ?1 )
      Figure A16: NFC overnight deposits, small member states

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      2

      10
      5

      p.p.

    • ?0 , ?1 )
      Figure A19: NFC overnight deposits, four lags

      Relative deposit rate (average)

      Relative deposit rate (interaction)
      5

      0

      p.p.

    • ?0 , ?1 )
      Figure A28: NFC overnight deposits, small member states

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      3

      5.0

      2

      2.5

      p.p.

    • ?0 , ?1 )
      Figure A31: NFC overnight deposits, four lags

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      3
      2

      p.p.

From High-refresh AMOLED screens to AI cameras, NUU's A15 and A25 bring a premium experience and flagship features without the costly price tag.

Retrieved on: 
Friday, October 13, 2023
Dark, Olympus, NUU, Kodak, Pure White, Rage, AI, AMOLED, TB, Sony, Smartphone, Recreation, CIPA, Human, Netflix, Dark purple, A25, Mah, Jet Black, Android 13, Consumer electronics, Mobile phone, Video game, Satellite navigation device, Camera, DALLAS, Canon, A15

DALLAS, Oct. 13, 2023 /PRNewswire/ -- How to deliver a truly exceptional smartphone experience at a price that people can genuinely afford? This was the question NUU sought to answer with its two latest smartphones – the A25 and A15.

Key Points: 
  • NUU's new A25 and A15 bring premium flagship smartphone features to all.
  • DALLAS, Oct. 13, 2023 /PRNewswire/ -- How to deliver a truly exceptional smartphone experience at a price that people can genuinely afford?
  • This was the question NUU sought to answer with its two latest smartphones – the A25 and A15.
  • To ensure a truly immersive flagship viewing experience, the A25 sports a 6.7" AMOLED FHD+ display and an in-screen fingerprint scanner.

The Timeless Frontier: NUU's New A Series Lineup Packs In the Best of Both Worlds with Past-Future Tech Synergy

Retrieved on: 
Wednesday, September 27, 2023
Dark, AMOLED, MSRP, Dark purple, Life, A15, Smartphone, Pure White, Attention, Element, Photography, Jet Black, A25, AI, Longevity, NUU, Samsung Galaxy A series, Mobile phone, Video game, Series

DALLAS, Sept. 26, 2023 /PRNewswire/ -- Forward-thinking, budget-friendly smartphone company NUU has just launched 3 exclusive handhelds which make up its brand-new A Series lineup. Each device represents part of a unique vision that blends together the best elements of past and present smartphones.

Key Points: 
  • Each device represents part of a unique vision that blends together the best elements of past and present smartphones.
  • The A Series was born as a direct answer to these two common grievances.
  • To address this, each phone in NUU's A Series lineup is affordable even on a tight budget.
  • The new A Series lineup is officially available for pre-order on September 26th, 2023, from their respective web pages.

GOWIN Semiconductor & Andes Technology Corp. Announce The First Ever RISC-V CPU and Subsystem Embedded 22nm SoC FPGA

Retrieved on: 
Tuesday, August 29, 2023
ECC, Acceleration, Communication, SerDes, SIN, SOC, TWSE, GPIO, CPU, SAN, A25, Architecture, Ecosystem, Silicon, Video game, FPGA

This integration, one of the first complete RISC-V microcontrollers in an FPGA, provides designers the A25 processor power and the peripherals most processors require without consuming any FPGA resources.

Key Points: 
  • This integration, one of the first complete RISC-V microcontrollers in an FPGA, provides designers the A25 processor power and the peripherals most processors require without consuming any FPGA resources.
  • Thus, the hardware team can populate the FPGA with their value-added design while the software team can concurrently create application code based on the rich RISC-V ecosystem.
  • “Andes is committed to delivering cutting-edge RISC-V technologies allowing developers to create innovative and efficient solutions.
  • The integration of the A25 RISC-V CPU and AE350 peripheral subsystem as a hard core in GOWIN Semiconductor’s GW5AST-138 FPGA marks a significant milestone in achieving this vision,” said Andes North America VP of Sales, Vivien Lin.

GOWIN Semiconductor & Andes Technology Corp. Announce The First RISC-V CPU and Subsystem Ever Embedded 22nm SoC FPGA

Retrieved on: 
Tuesday, August 29, 2023
ECC, Acceleration, Communication, SerDes, SIN, SOC, TWSE, GPIO, CPU, A25, Architecture, Ecosystem, Silicon, Video game, FPGA

This integration, one of the first complete RISC-V microcontrollers in an FPGA, provides designers the A25 processor power and the peripherals most processors require without consuming any FPGA resources.

Key Points: 
  • This integration, one of the first complete RISC-V microcontrollers in an FPGA, provides designers the A25 processor power and the peripherals most processors require without consuming any FPGA resources.
  • Thus, the hardware team can populate the FPGA with their value-added design while the software team can concurrently create application code based on the rich RISC-V ecosystem.
  • “Andes is committed to delivering cutting-edge RISC-V technologies allowing developers to create innovative and efficient solutions.
  • The integration of the A25 RISC-V CPU and AE350 peripheral subsystem as a hard core in GOWIN Semiconductor’s GW5AST-138 FPGA marks a significant milestone in achieving this vision,” said Andes North America VP of Sales, Vivien Lin.

EQS-News: SFC Energy celebrates 20 years of fuel cells in the leisure market at Caravan Salon Düsseldorf - 'Clean energy for generations. Anytime, anywhere.'

Retrieved on: 
Friday, August 25, 2023
Hydrogen, Electronics, Carbon dioxide, SFC, Caravan, DE, A25, Camping, ISIN, CO2, Renewable energy, Electric battery, RV, Brunnthal

SFC Energy celebrates 20 years of fuel cells in the leisure market at Caravan Salon Düsseldorf - 'Clean energy for generations.

Key Points: 
  • SFC Energy celebrates 20 years of fuel cells in the leisure market at Caravan Salon Düsseldorf - 'Clean energy for generations.
  • SFC Energy celebrates 20 years of fuel cells in the leisure market at Caravan Salon Düsseldorf - "Clean energy for generations.
  • Back in 2003, SFC Energy presented the world's first fuel cell system for the leisure market and launched the concept of hybridising solar, fuel cell and energy management.
  • Dr. Peter Podesser, CEO of SFC Energy: "We are proud to look back on 20 years of fuel cells in the leisure market.

Fox News Channel’s Gutfeld! Debut Week Crushes NBC’s Tonight Show With Jimmy Fallon and Nearly Ties ABC’s Jimmy Kimmel Live! in Total Viewers

Retrieved on: 
Tuesday, April 13, 2021
TV and Radio, Technology, Other Communications, Licensing (Entertainment), Online, General Entertainment, Entertainment, Celebrity, Communications, Networks, Other Entertainment, A25

(weekdays, 11PM-12AM/ET) topped broadcast program NBC\xe2\x80\x99s Tonight Show with Jimmy Fallon (1,378,000 P2+) and nearly tied ABC\xe2\x80\x99s Jimmy Kimmel Live!

Key Points: 
  • (weekdays, 11PM-12AM/ET) topped broadcast program NBC\xe2\x80\x99s Tonight Show with Jimmy Fallon (1,378,000 P2+) and nearly tied ABC\xe2\x80\x99s Jimmy Kimmel Live!
  • * in total viewers (1,580,000 P2+) while outpacing Comedy Central\xe2\x80\x99s The Daily Show with Trevor Noah (524,000 P2+; 205,000 A25-54) and TBS\xe2\x80\x99 Conan (250,000 P2+; 134,000 A25-54) in total viewers, A25-54 and A18-49, according to Nielsen Media Research.
  • averaged 1,570,000 viewers, 307,000 in A25-54 and 185,000 with A18-49, dominating the 11PM/ET cable news timeslot across the board in all categories.
  • on Saturday at 10PM/ET delivered 1,208,000 viewers, topping all CNN and MSNBC Saturday programs in total viewers.