Acharya, Viral V.; Das, Abhiman; Kulkarni, Nirupama; … - National Bureau of Economic Research - 2022
We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits that … seek safety in state-owned public sector banks (PSBs). We trace the consequences of this reallocation using granular data … on bank-firm relationships and branch balance sheets. The flight to safety is not a flight to quality. Lending shrinks …
