Bank Size and Household Financial Sentiment: Surprising Evidence from University of Michigan Surveys of Consumers

Berger, Allen N.; Irresberger, Felix; Roman, Raluca A.

doi:10.1111/jmcb.12738

Bank Size and Household Financial Sentiment: Surprising Evidence from University of Michigan Surveys of Consumers

Berger, Allen N.; Irresberger, Felix; Roman, Raluca A.

Authors

Allen N. Berger

Dr Felix Irresberger felix.irresberger@durham.ac.uk
Professor

Raluca A. Roman

Abstract

We analyze comparative advantages/disadvantages of small and large banks in improving household financial sentiment. Matching University of Michigan Surveys of Consumers household sentiment data with local banking market data from 2000 to 2014, we find surprising results—large banks have significant comparative advantages in boosting such sentiment. The findings apply across demographic groups, market types, and time periods, and are robust to different measurements and econometric methods. We contribute to the literatures on bank specialness, benefits and costs of small and large banks, household sentiment, and real effects of banking. We conjecture about the drivers of the findings, and discuss policy implications.

Citation

Berger, A. N., Irresberger, F., & Roman, R. A. (2020). Bank Size and Household Financial Sentiment: Surprising Evidence from University of Michigan Surveys of Consumers. Journal of Money, Credit and Banking, 52(S1), 149-191. https://doi.org/10.1111/jmcb.12738

Journal Article Type	Article
Acceptance Date	Aug 21, 2019
Online Publication Date	Nov 6, 2020
Publication Date	2020-10
Deposit Date	Jul 23, 2020
Publicly Available Date	Nov 6, 2022
Journal	Journal of Money, Credit and Banking
Print ISSN	0022-2879
Publisher	Wiley
Peer Reviewed	Peer Reviewed
Volume	52
Issue	S1
Pages	149-191
DOI	https://doi.org/10.1111/jmcb.12738
Public URL	https://durham-repository.worktribe.com/output/1260061
Related Public URLs	http://eprints.whiterose.ac.uk/150047/

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Copyright Statement
This is the peer reviewed version of the following article: Berger, Allen N. Irresberger, Felix & Roman, Raluca A. (2020). Bank Size and Household Financial Sentiment: Surprising Evidence from University of Michigan Surveys of Consumers. Journal of Money, Credit and Banking 52(S1): 149-191 which has been published in final form at https://doi.org/10.1111/jmcb.12738. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.