Template-Type: ReDIF-Article 1.0

Author-Name: Katalin Csaba-Kalló
Author-Workplace-Name: PhD candidate at Corvinus University of Budapest
Author-Email: csaba.katalin.corvinus@gmail.com

Author-Name: Balázs Vajai
Author-Workplace-Name: National Deposit Insurance Fund Hungary
Author-Email: vajaib@oba.hu


Title: Experiences of the National Deposit Insurance
Fund on the Age Composition of Depositors
and on the Distribution of Deposit Amounts

Abstract: In the span of two years (2014 and 2015), ten credit institutions were liquidated
in Hungary. Depositors were reimbursed by the National Deposit Insurance Fund
(NDIF) in the total amount of HUF 219 billion. This is the first time that the depositor
database of the liquidated credit institutions is subject to research. The basic
features of the compensation data are presented with the assistance of descriptive
statistics tools in the dimensions of the paid-out compensation amounts and the age
of depositors. We confirm the hypothesis that the paid-out compensation amounts
follow an extreme value distribution, more specifically, a Weibull distribution. The
distribution shows that above HUF 5 million, the number of reimbursed depositors
grew only moderately, while the paid-out compensation amounts increased
significantly. Moreover, in making a comparison between the age distribution of
reimbursed depositors and the age distribution of the Hungarian population we
found that the savings deposited with the liquidated credit institutions are consistent
with Modigliani’s life-cycle hypothesis.

Classification-JEL: D14, D18, G21
Keywords: household saving/personal finance, consumer protection, banks
Pages: 28–39
Volume: 16
Issue: 2
Year: 2017
File-URL: http://english.hitelintezetiszemle.hu/letoltes/experiences-of-the-national-katalin-csaba-kallo-balazs-vajai.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:16:y:2017:i:2:p:28-39