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Households' Decisions on Savings Accounts After Negative Experiences with Banks During the Financial Crisis
Author(s) -
VAN DER CRUIJSEN CARIN A.B.,
DE HAAN JAKOB,
JANSEN DAVIDJAN,
MOSCH ROBERT H.J.
Publication year - 2012
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.2012.01240.x
Subject(s) - bailout , bankruptcy , shock (circulatory) , financial crisis , business , government (linguistics) , savings account , financial system , bank account , finance , economics , monetary economics , macroeconomics , medicine , linguistics , philosophy , payment
During the 2007–2008 financial crisis, consumers in many countries were suddenly confronted with the fact that their bank needed government support or had even failed. Using a detailed survey among households in the Netherlands, we show how these unexpected negative experiences have changed consumers' handling of their savings accounts. Our findings suggest that respondents who were customers of troubled banking institutions were subsequently more likely to spread their savings across accounts at several banks. They were also more likely to move funds across banks. Our results also suggest that the size of the shock is important as the strongest effects are found for respondents who experienced both a bank bailout and a bankruptcy.