Maze-Runners: Sentiment and Bank Deposit Growth: Evidence from the UK

Mohamed Sherif; Mohamed Elsharkawy; Audrey Paterson

doi:10.1561/105.00000182

Maze-Runners: Sentiment and Bank Deposit Growth: Evidence from the UK

Mohamed Sherif^* (Corresponding Author), Mohamed Elsharkawy, Audrey Paterson

^*Corresponding author for this work

Cairo University

Research output: Contribution to journal › Article › peer-review

Abstract

This paper investigates the relationship between household, managerial and economic sentiments, and bank deposits. Using UK monthly data from January 2000 to February 2018 and a sample of consumer, industrial and economic confidence indicators provided by the European Commission, this paper provides novel evidence on how sentiment affects the deposit growth and interest rates in the UK. In addition, this paper finds robust evidence regarding the impact of managerial sentiment on bond rates, LIBOR rates, and corporate deposit growth, implying that managers’ sentiments play a significant role in determining the level of business’s savings. It is also reported that household sentiment plays a significant role in shaping the households deposit growth. Moreover, economic sentiment is shown to affect the deposit growth of both households and institutions.

Original language	English
Pages (from-to)	123-150
Number of pages	28
Journal	Review of Behavioral Economics
Volume	11
Issue number	1
Early online date	22 Feb 2024
DOIs	https://doi.org/10.1561/105.00000182
Publication status	Published - 2024

Keywords

Managerial sentiment
stock market
interest rates
UK banks
G01
G02
G21
G30

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Cite this

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title = "Maze-Runners: Sentiment and Bank Deposit Growth: Evidence from the UK",

abstract = "This paper investigates the relationship between household, managerial and economic sentiments, and bank deposits. Using UK monthly data from January 2000 to February 2018 and a sample of consumer, industrial and economic confidence indicators provided by the European Commission, this paper provides novel evidence on how sentiment affects the deposit growth and interest rates in the UK. In addition, this paper finds robust evidence regarding the impact of managerial sentiment on bond rates, LIBOR rates, and corporate deposit growth, implying that managers{\textquoteright} sentiments play a significant role in determining the level of business{\textquoteright}s savings. It is also reported that household sentiment plays a significant role in shaping the households deposit growth. Moreover, economic sentiment is shown to affect the deposit growth of both households and institutions.",

keywords = "Managerial sentiment, stock market, interest rates, UK banks, G01, G02, G21, G30",

author = "Mohamed Sherif and Mohamed Elsharkawy and Audrey Paterson",

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journal = "Review of Behavioral Economics",

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N2 - This paper investigates the relationship between household, managerial and economic sentiments, and bank deposits. Using UK monthly data from January 2000 to February 2018 and a sample of consumer, industrial and economic confidence indicators provided by the European Commission, this paper provides novel evidence on how sentiment affects the deposit growth and interest rates in the UK. In addition, this paper finds robust evidence regarding the impact of managerial sentiment on bond rates, LIBOR rates, and corporate deposit growth, implying that managers’ sentiments play a significant role in determining the level of business’s savings. It is also reported that household sentiment plays a significant role in shaping the households deposit growth. Moreover, economic sentiment is shown to affect the deposit growth of both households and institutions.

AB - This paper investigates the relationship between household, managerial and economic sentiments, and bank deposits. Using UK monthly data from January 2000 to February 2018 and a sample of consumer, industrial and economic confidence indicators provided by the European Commission, this paper provides novel evidence on how sentiment affects the deposit growth and interest rates in the UK. In addition, this paper finds robust evidence regarding the impact of managerial sentiment on bond rates, LIBOR rates, and corporate deposit growth, implying that managers’ sentiments play a significant role in determining the level of business’s savings. It is also reported that household sentiment plays a significant role in shaping the households deposit growth. Moreover, economic sentiment is shown to affect the deposit growth of both households and institutions.

KW - Managerial sentiment

KW - stock market

KW - interest rates

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Maze-Runners: Sentiment and Bank Deposit Growth: Evidence from the UK

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Keywords

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