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Abstract
Ashton J. K. and Gregoriou A. The influence of banking centralization on depositors: regional heterogeneities in the transmission of monetary policy, Regional Studies. This study examines whether regionally and nationally branching banks set deposits interest rates differently. This assessment of the UK retail deposit market between 1992 and 2008 indicates that regional banks set deposit interest rates in a manner distinct to nationally branching banks. Changes in the market interest rate to retail rates are characterized by a non-linear mean-reverting process. Deposit interest rates offered by regional banks are lower, slower to respond to wholesale interest rate increases, and swiftly respond to wholesale interest rate falls, relative to national banks. This evidence is consistent with distinct monetary conditions existing in UK regions.
Ashton J. K. and Gregoriou A. 银行存款集中化的影响：货币政策传导的区域异质性，区域研究。本研究检视在区域和在全国设立分行的银行是否会设定不同的存款利率。1992 至 2008 年英国零售存款市场的评估指出，区域性银行的存款利率设定方式有别于全国性的银行。市场利率之于零售利率的改变，具有非线性均值回复过程的特征。与全国性银行相较而言，区域性银行的存款利率较低、对趸售利率增加的反应较慢，但却会迅速反应趸售利率的降低。该证据与英国区域中存有的特殊货币状况相互一致。
Ashton J. K. et Gregoriou A. L'influence de la centralisation bancaire sur les déposants: les hétérogénéités régionales dans la transmission de la politique monétaire, Regional Studies. Cette étude cherche à examiner si, oui ou non, les banques à succursales nationales et régionales fixent les taux d'intérêt sur les dépôts de façon différente. Cette évaluation du marché de dépôts entre 1992 et 2008 indique que les banques régionales fixent les taux d'intérêt sur les dépôts de façon différente par rapport aux banques à succursales nationales. La transmission du taux de marché aux taux bancaires se caractérisent par un processus de retour à la moyenne non-linéaire. Les taux d'intérêt sur les dépôts offerts par les banques sont moins élevés, répondent plus lentement aux augmentations des taux de gros, et répondent rapidement aux baisses des taux de gros, par rapport aux banques nationales. Ces preuves concordent avec les conditions monétaires précises en vigueur dans les régions britanniques.
Ashton J. K. und Gregoriou A. Der Einfluss der Bankenzentralisierung auf Anleger: regionale Heterogenitäten bei der Transmission der Geldpolitik, Regional Studies. In dieser Studie wird untersucht, ob Banken mit regionalen Filialen andere Guthabenzinssätze festlegen als Banken mit landesweiten Filialen. Aus einer Bewertung des britischen Einzelhandels-Einlagenmarkts im Zeitraum von 1992 bis 2008 geht hervor, dass regionale Banken ihre Guthabenzinssätze auf andere Weise festlegen als Banken mit landesweiten Filialen. Die Veränderungen des Marktzinssatzes im Vergleich zu den Einzelhandelszinssätzen zeichnen sich durch einen nichtlinearen Prozess der Rückkehr zum Mittelwert aus. Die von regionalen Banken angebotenen Guthabenzinssätze fallen im Vergleich zu nationalen Banken niedriger aus und reagieren langsamer auf Erhöhungen und schnell auf Senkungen des Großhandelszinssatzes. Diese Ergebnisse decken sich mit den unterschiedlichen monetären Bedingungen in den britischen Regionen.
Ashton J. K. y Gregoriou A. La influencia de la centralización bancaria en los inversores: heterogeneidades regionales en la transmisión de la política monetaria, Regional Studies. En este estudio examinamos si las entidades bancarias de ámbito regional y nacional fijan tipos de interés diferentes para depósitos. Esta evaluación del mercado británico de depósitos minoristas entre 1992 y 2008 indica que los bancos regionales fijan los tipos de interés para depósitos de modo distinto que las entidades bancarias de ámbito nacional. Los cambios en el tipo de interés mercantil en comparación con los tipos aplicados a minoristas se caracterizan por un proceso no lineal de reversión a la media. Los tipos de interés para depósitos que ofrecen los bancos regionales son menores, responden con más lentitud cuando aumentan los tipos de interés general, y con rapidez cuando caen los tipos de interés general de los bancos nacionales. Estos síntomas coinciden con las diferentes condiciones monetarias que existen en las regiones británicas.
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Acknowledgements
The authors would like to thank Moneyfacts plc for the use of its extensive data set on UK financial services. Further they thank the participants at the British Accounting and Finance Association Conference, Brighton, UK, 2012, and the European Association of Teachers in Banking and Finance, University of Malta, 2012; and two anonymous referees for their helpful comments. The usual disclaimer applies.
Notes
Values of £1000, £5000, £10 000 and £25 000 in 1992 would be £673, £3365, £6730 and £16 827 in 2008 when deflated by the UK Annual Retail Price Index.
Interest rate change in this market has been previously examined (Ashton, Citation2009b). The present study reports interest rates on retail deposits change with a periodic frequency for most banks, with a minority of larger retail banks and converted building societies changing deposit interest rates simultaneously. Distinctly, all individual banks that have a number of deposit accounts tend to change the interest rates of their own deposit accounts simultaneously.
Full definitions of the 50% and 25% classifications and associated descriptive statistics are provided in a working paper version of this work (Ashton and Gregoriou, Citation2012).
There is also an alternative literature that attempts to capture the non-linear unit root behaviour by implementing the two structural break unit root test established by Lee and Strazicich Citation(2003). Both further discussion and results from this approach are contained in a working paper version of the study (Ashton and Gregoriou, Citation2012).
The decision to break the sample at 1999 follows an assessment of structural breaks using the Lee and Strazicich Citation(2003) two-break unit root test. The results from these tests indicate there is a structural break in the ILIBOR rate at the cut-off point between the two periods, justifying the use of the subsamples. The estimated break dates suggest that both breaks took place around 1999–2000, justifying the sample split at 1999. The results from the two break tests are in complete agreement with the linear unit root tests that do not encapsulate structural breaks, suggesting that the Lee and Strazicich test requires that the breaks, captured through the use of time dummies, are very sharp. For further discussion, see Ashton and Gregoriou Citation(2012).
All the linear unit root tests with a constant and a trend are estimated; for robustness they are also estimated for a constant and trend in isolation. The results do not change and are available from the authors upon request.
A robustness test with constant and a trend was also undertaken, yet as none of these results was significantly different, the results are not reported and are available from the authors upon request. The lag structure of the various unit root tests (linear and non-linear) that is estimate is not reported. This is because the results remain intact regardless of the lag structure of the unit root tests. The results of the unit root tests with lag structures from one to twelve are available from the authors upon request.
The unit root assessment of these data is available in an associated working paper (Ashton and Gregoriou, Citation2012). For further robustness the entire econometric analysis was repeated by defining regional banks as institutions with 50% or more of their branches located within a particular region. The results reported in this paper remain intact and are available from the authors upon request.