We study how heterogeneity in banks’ asset holdings affects fragility. In the model, banks face a risk of bank runs and … sell their assets at the same time. When banks are homogeneous, their selling behaviors are synchronized, and bank runs are …

fragility manifests itself in stronger sensitivity of deposit flows to bank performance. A deterioration in the aggregate … conditions in the banking system makes the fragility within each bank stronger. We run multiple tests to show that depositors …

We study how heterogeneity in banks' asset holdings affects fragility. In the model, banks face a risk of bank runs and … sell their assets at the same time. When banks are homogeneous, their selling behaviors are synchronized, and bank runs are …

sensitivity of deposit flows to bank performance. The fragility is stronger when the aggregate conditions in the banking system …