Household deposits and bank license withdrawals in the Russian regions

In our paper we try to answer the question whether license withdrawals undermine households’ confidence in banks and decrease their incentives to make deposits in Russia. To address this question we use balanced panel data for Russian regions for 2010—2016. We find some evidence in favor of a small positive statistically significant effect of banks branches closures due to license withdrawals on household deposits. At the same time we don’t observe statistically significant increase of households’ deposits in the large state-owned banks.