The Role of Household Deposits in Funding the Stability of Credit Institutions in the Eurozone

Abstract

The paper presents the results of empirical research on the stability of household deposits lodged in the monetary financial institutions (MFIs) of euro area member states in the period 2006–2012. Its aim is to assess the effectiveness of liquidity regulations based on the common European standards (norms: LCR and NSFR). The paper presents the differences in the ability of the countries to accumulate the deposits which, in the opinion of the supervisory authorities, can guarantee the funding stability of the analysed entities under both normal and stressed conditions. It reveals geographical variations in household preferences regarding the duration and value of invested resources and also shows the diversity in the impact of the stages of the financial crisis on the changes in the value of the deposits taken by the Eurozone’s MFIs.