Geopolitical Risk and Domestic Bank Deposits
Journal: Financial Management
Year: 2025

ABSTRACT We investigate the relationship between global geopolitical risk and bank deposit flows across a wide panel of European countries. Motivated by the pivotal role of deposit stability for financial intermediation and systemic resilience, we explore whether geopolitical shocks alter depositors’ portfolio choices. Using quarterly country‐level data and employing the geopolitical risk (GPR) index of Caldara and Iacoviello, along with its subindices (GPR Acts and GPR Threats), we document tha