Intangible Customer Capital and Bank Resilience

UNIVERSITY OF TECHNOLOGY SYDNEY
Finance Department
Research Seminars in Finance

Hongyu (Derek) Shan

Topic: Intangible Customer Capital and Bank Resilience

Speaker: Hongyu (Derek) Shan, Fordham University

Abstract: Bank stability depends critically on its ability to connect and retain customers amid negative shocks. This study proposes a novel measure of accumulated customer capital at the branch-level. In a within bank-county estimation, we exploit reputation damage as exogenous negative shocks to deposit-taking and find that branches with higher customer capital mitigate deposit outflows more effectively. These results are stronger in neighborhoods with higher income and lower population mobility, and for branches of community banks. Overall, our work highlights the value of intangible customer capital as a novel and important factor influencing the resilience of retail banking relationships.

Moderator: Thomas Matthys, University of Technology Sydney

Date: Wednesday, 11th August 2021
Time: 9-10 am (Australian Eastern Standard Time)
Venue: This is on online Zoom webinar.

Seminar protocols:

  • The webinar will run for 45 minutes, followed by a 15 minute Q&A session.
  • There will be a moderator for each seminar event, who will facilitate communication and resolve any technical issues.
  • Participants can use the chat facility or raise their had to ask questions during the presentation. The moderator will then alert the speaker at the appropriate time and either ask the questions raised or unmute the participant so they can ask the question directly to the presenter.

Co-ordinator: Harry Scheule

Enquiries: Duncan Ford

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Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.