Deposit Insurance and Deposit Behavior (IMAGE)

Bocconi University

Deposit Insurance and Deposit Behavior

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In April 2017, though, the Colombian deposit guarantee fund increased the insurance for individual deposits from 20mln Colombian pesos (COP) (approximately 6,780 USD) to 50mln COP (around 16,950 USD). Professor Limodio observed that more than 40% of savers exhibited a bunching behavior, and that they increased the level of their deposits after the threshold change much more than those with already higher deposits.

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Weiwei Chen, Bocconi University (Milan)

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