@article{ART002856850},
author={Yong-Ho Cheon and Ban, Juil},
title={A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit},
journal={Asset Management Review},
issn={2288-6672},
year={2022},
volume={10},
number={1},
pages={15-42},
doi={10.23007/amr.2022.10.1.15}
TY - JOUR
AU - Yong-Ho Cheon
AU - Ban, Juil
TI - A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit
JO - Asset Management Review
PY - 2022
VL - 10
IS - 1
PB - Institute of Management Research, SungKyunKwan University
SP - 15
EP - 42
SN - 2288-6672
AB - The terms and conditions of the installment deposit allow depositors to prepay/delay their monthly savings when they deposit earlier/later than contracted dates. The number of days of pre-payment and delayed payment are calculated respectively to offset each other. Based on these principles, we devise asset management strategies that completely replicate the money flow pattern of 12~13 month time deposits using 12 month installment deposits. Using 13 years (from November 2008 to October 2021) of interest rate data from savings banks in Korea, we analyze the performance of these strategies. Our empirical analysis reveals that the probabilities of generating additional profits of our strategies compared to the ordinary time deposits are 94~98% and that the average of additional profits are 43~55bp based on 12 months period.
Our work has the following practical implication. Given that the interest rate of installment deposits is relatively higher than that of time deposits, depositors who need time deposits can earn more profits if the money flow pattern of time deposits is replicated by using installment deposits appropriately.
KW - Installment Deposit;Time Deposit;Terms and Conditions of Bank Deposit;Asset Management Strategy;Savings Bank
DO - 10.23007/amr.2022.10.1.15
ER -
Yong-Ho Cheon and Ban, Juil. (2022). A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit. Asset Management Review, 10(1), 15-42.
Yong-Ho Cheon and Ban, Juil. 2022, "A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit", Asset Management Review, vol.10, no.1 pp.15-42. Available from: doi:10.23007/amr.2022.10.1.15
Yong-Ho Cheon, Ban, Juil "A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit" Asset Management Review 10.1 pp.15-42 (2022) : 15.
Yong-Ho Cheon, Ban, Juil. A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit. 2022; 10(1), 15-42. Available from: doi:10.23007/amr.2022.10.1.15
Yong-Ho Cheon and Ban, Juil. "A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit" Asset Management Review 10, no.1 (2022) : 15-42.doi: 10.23007/amr.2022.10.1.15
Yong-Ho Cheon; Ban, Juil. A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit. Asset Management Review, 10(1), 15-42. doi: 10.23007/amr.2022.10.1.15
Yong-Ho Cheon; Ban, Juil. A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit. Asset Management Review. 2022; 10(1) 15-42. doi: 10.23007/amr.2022.10.1.15
Yong-Ho Cheon, Ban, Juil. A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit. 2022; 10(1), 15-42. Available from: doi:10.23007/amr.2022.10.1.15
Yong-Ho Cheon and Ban, Juil. "A Study on Asset Management Strategies Utilizing the Terms and Conditions for Pre and Delayed Payments of Installment Deposit" Asset Management Review 10, no.1 (2022) : 15-42.doi: 10.23007/amr.2022.10.1.15
