Core deposits to total assets (Berger, 2014)
The charter value reflects future economic rents a bank can obtain via its access to markets that are largely protected from competition. Traditionally, charter values in banking are measured using Tobin's q. However, in the absence of a large number of listed banks, an alternative measure of charter value needs be considered. Hutchison and Pennacchi (1996) show that the ratio of demand deposits to total deposits is informative about a bank's charter value (Berger, 2014)