Working Paper（22-003E）Effects of Bank Branch/ATM Consolidations on Cash Demand: Evidence from Bank Account Transaction Data in Japan

This study considers the retrogression event of convenience for bank users as a natural experiment and analyzes the effect of this event on cash demand. Using bank account transaction data, we find that branch/ATM consolidations reduce not only the amount of cash withdrawals by past users but also the total expenditure and inflows that include non cash transactions by the same amount. This implies that the retrogression in convenience possibly caused users to shift to other banks for their daily payments. We also document facts about cash withdrawals from ATMs using bank account transaction data.

JEL Classification Number : D14, E41

Keywords: money demand, ATM, natural experiment

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