Bank deposit rate clustering: theory and empirical evidence

An examination of banks' optimal deposit-rate-setting behavior when some customers have limited recall, showing that when banks exploit this phenomenon, deposit rates will tend to be set at round fractions and will be relatively "sticky" at these levels.

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Year of publication:	1996
Authors:	Kahn, Charles ; Pennacchi, George ; Sopranzetti, Ben
Institutions:	Federal Reserve Bank of Cleveland
Subject:	Bank deposits \| Interest \| Prices

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Extent:	application/pdf
Series:	Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 9604
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005428193