Publication
The price of deposit liquidity: banks versus microfinance institutions
Laureti, C. & Szafarz, A., Nov-2016, In : Applied Economics Letters. 23, 17, p. 1244-1249 6 p.Research output: Contribution to journal › Article › Academic › peer-review

Documents
- The price of deposit liquidity banks versus microfinance institutions
Final publisher's version, 916 KB, PDF document
DOI
Using data from Bangladesh, this article finds that the liquidity premium - the difference between the interest paid on illiquid and liquid savings accounts - is higher in commercial banks than in microfinance institutions. One possible interpretation lies in the higher prevalence of time-inconsistency among the poor. The observed difference in liquidity premia could be due to poor time-inconsistent agents willing to forgo interest on illiquid savings accounts in order to discipline their future selves.
Original language | English |
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Pages (from-to) | 1244-1249 |
Number of pages | 6 |
Journal | Applied Economics Letters |
Volume | 23 |
Issue number | 17 |
Publication status | Published - Nov-2016 |
Externally published | Yes |
- Liquidity premium, present-bias, banks, microfinance, Bangladesh, SELF-CONTROL, BOOTSTRAP, POVERTY, FIELD, SIZE
Keywords
ID: 57888373