Are Incomes a Key Determinant of the Levels of Ousehold Sight Deposits During a Financial Market Downturn? The Case of the Eurozone Countries

Abstract

The paper investigates the significance of households' characteristics for the levels of their sight deposits in the eurozone countries - which, according to the European Banking Authority (EBA), are primarily dependent on household incomes. The analysis is based on household-level data and applies regression models. Its main finding is that the effect of annual gross incomes of households was statistically significant in most of the eurozone countries. However, a broader set of household characteristics revealed various mechanisms of the formation of sight deposits. The priority significance of incomes was confirmed only in four member states.(original abstract)