Dynamics of Savings
Niels-Viggo Haueter

Looking at large shifts in the financial services sector, we can identify monetary policies, regulation, crises, and innovation as main drivers. However, they do not act independently. For example, high interest rates affect both banking and insurance, yet not in the same way. Depending on their respective regulation the impact may vary and cause services to shift from one industry to the other. We will focus on savings as one area where services shifted frequently between not only banks and insurers but also a variety of alternative institutions such as saving clubs, thrifts, building societies, life insurers, mutual funds, as well as governments.