Journal of Applied Finance & Banking

The Stability of Banks’ Retail Deposits at the Early Stages of Covid-19 Pandemic: A Preliminary Evidence from Euro Area

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• Abstract

   

  In this paper we analyze trends of euro area banks’ retail deposits at the early stages of Covid-19. It emerges that overnight and total deposits placed by households and non-financial corporations in the major euro area countries (Germany, France, Italy and Spain) are “sluggish” and “sticky” even in an extraordinary period characterized by unexpected shocks due to the ongoing pandemic. All this for the benefit of solidity of the European banking and financial system and, more broadly, of the systemic risk.

   

  JEL classification number: G21.

  Keywords: Covid-19, Banks’ retail deposits, Households and non-financial corporations, Euro area.