Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
This paper investigates implications of the designation of national systemically important banks (Other Systemically Important Institutions — O-SIIs) in Germany. It looks whether being labelled as ‘systemically important financial institution’ affects banks’ deposit funding costs. Results show that being designated as O-SII brings a funding cost advantage of about 30bps for deposits in the aftermath of the announcement. The finding points toward some unintended consequence of measures implemented to address ‘too-big-to-fail’ related issues.