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Competition for Savings Deposits in the U.S.: 1936-1966

Published online by Cambridge University Press:  19 October 2009

Lewis J. Spellman
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Extract

The growing sensitivity of savings deposits to flow in response to changes in interest rate differentials has become so commonplace in the past decade that the term “disintermediation” has become a part of the economists' vocabulary. It is a major conclusion of this paper that the volatility of savings deposits began to increase as early as 1950 for savings and loan associations and credit unions and as early as 1945 for mutual savings banks. As an indication of this, we proxy changes in the competitive environment for savings deposits by making yearly estimates of the elasticity of savings deposits with respect to deposit rates at savings and loan associations, mutual savings banks, and credit unions.

Type
IV. Management of Financial Institutions
Information
Journal of Financial and Quantitative Analysis , Volume 10 , Issue 4 , November 1975 , pp. 567 - 576
Copyright
Copyright © School of Business Administration, University of Washington 1975

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