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Households' Decisions on Savings Accounts After Negative Experiences with Banks During the Financial Crisis


  • Corrie Vis (CentERdata) was extremely helpful in arranging the survey. We thank two anonymous referees and seminar participants at various venues for useful comments and guidance, which have greatly improved the article. Any errors or omissions are of course our own responsibility. Views expressed in this article do not necessarily coincide with those of De Nederlandsche Bank or the International Monetary Fund.


During the 2007–2008 financial crisis, consumers in many countries were suddenly confronted with the fact that their bank needed government support or had even failed. Using a detailed survey among households in the Netherlands, we show how these unexpected negative experiences have changed consumers' handling of their savings accounts. Our findings suggest that respondents who were customers of troubled banking institutions were subsequently more likely to spread their savings across accounts at several banks. They were also more likely to move funds across banks. Our results also suggest that the size of the shock is important as the strongest effects are found for respondents who experienced both a bank bailout and a bankruptcy.