tWe investigate households’ bank switching exploiting a unique representative dataset from Bank of ItalySurvey on Household Income and Wealth that follows the households and their bank(s) over time. First,we document that bank switching is quite prevalent in our sample, with almost a quarter of householdschanging their main bank in a biannual horizon. Next, we relate the decision to switch to the featuresand dynamics of household bank relationship, and to the characteristics of both households and banks.In line with the switching cost theory, we find that using more than a single bank, as well as the intensity(number of services used), and the scope (bank services used) of the relationship with the main bank playa role in shaping the households’ decision to switch. Moreover, bank switching is strongly and positivelycorrelated with both taking out and having paid off a mortgage.

Brunetti, M., Ciciretti, R., Djordjevic, L. (2016). The determinants of household's bank switching. JOURNAL OF FINANCIAL STABILITY, 26, 175-189 [10.1016/j.jfs.2016.08.004].

The determinants of household's bank switching

BRUNETTI, MARIANNA;CICIRETTI, ROCCO;DJORDJEVIC, LJUBICA
2016-01-01

Abstract

tWe investigate households’ bank switching exploiting a unique representative dataset from Bank of ItalySurvey on Household Income and Wealth that follows the households and their bank(s) over time. First,we document that bank switching is quite prevalent in our sample, with almost a quarter of householdschanging their main bank in a biannual horizon. Next, we relate the decision to switch to the featuresand dynamics of household bank relationship, and to the characteristics of both households and banks.In line with the switching cost theory, we find that using more than a single bank, as well as the intensity(number of services used), and the scope (bank services used) of the relationship with the main bank playa role in shaping the households’ decision to switch. Moreover, bank switching is strongly and positivelycorrelated with both taking out and having paid off a mortgage.
2016
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/02 - POLITICA ECONOMICA
English
Con Impact Factor ISI
Household-bank relationship; Switching cost; Bank services
http://www.sciencedirect.com/science/article/pii/S1572308916300894
Brunetti, M., Ciciretti, R., Djordjevic, L. (2016). The determinants of household's bank switching. JOURNAL OF FINANCIAL STABILITY, 26, 175-189 [10.1016/j.jfs.2016.08.004].
Brunetti, M; Ciciretti, R; Djordjevic, L
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/165216
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