Deposit Insurance and Depositor Behavior: Evidence from Colombia


  • Documentos CEDE


  • We exploit a large and unexpected increase in the Colombian insurance threshold to investigate how depositors respond to higher deposit insurance. Monthly depositor-level records from a major bank show that the level and growth rate of deposits rise with higher coverage. Individuals who were fully and nearly-fully insured before the policy drive this increment. A survey of bank customers indicates that higher deposits were replenished by lowering cash and other assets. We estimate an elasticity of deposit growth to deposit insurance of 0.4%, and find a similar figure in the United States by leveraging the 2008 increase in deposit insurance.

fecha de publicación

  • 2021

Líneas de investigación

  • Banking
  • Financial Regulation
  • Household Saving


  • 18800