Retail Deposit Fees and Multimarket BankingDivisions of Research & Statistics and Monetary Affairs, Federal Reserve Board, 2005 - Banks and banking - 36 pages This paper reports a systematic examination of the determinants of deposit-related retail banking fees using a set of survey data that is unusual for its size, specificity, and sampling properties. The analysis focuses explicitly on six different fees associated with checking accounts and automated teller machine (ATM) usage. A preliminary analysis documents that, on average, multimarket banks charge substantially higher fees than do typically smaller, single-market banks. A more detailed econometric analysis yields results consistent with predictions of recent models. In particular, it finds that the greater the presence of multimarket banks in the local market, the higher are the retail deposit fees of single-market banks (except in highly concentrated markets) and the weaker is the positive relationship between those fees and market concentration. |
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account holder Adam Copeland Analysis Andrew Cohen April Asset Athanasios Orphanides ATM foreign fee ATM surcharge August bank fee banks and thrift Barros Brian Sack brshare charge higher fees charged by single-market charged the account Competition December deposit interest rates deposit items returned deposit-related fees depositors depository institutions depreturn differences Economics Discussion Series Effects Egon Zakrajsek estimations February Federal Reserve Board fees charged fees of single-market Finance and Economics funding advantage Hannan and Prager Herfindahl-Hirschman index imply In(mktpop insufficient funds Kevin Moore large multimarket banks market banks market concentration Market Structure measure of concentration median Monetary Policy MSAs multimarket banks charge multimarket institutions November nsf fee October overdraft fee Park and Pennacchi Pennacchi 2005 prediction presence of multimarket Prices relationship reported Retail Deposit Fees retail fees sample single-market banks single-market institutions statistically significant stop payment Takeshi Kimura Term Structure thrift institutions Tim Bollerslev Timothy H wholesale funding yields