We develop a framework to estimate bank franchise value. Contrary to existing models, sticky deposits and low deposit …

panel database of South Dakota bank stockholders from 1910-1934 to study bank stockholder growth as well as its effect on … bank composition and risk. Overall, the average number of stockholders in a bank rose from 8 to 21 over the period with … with a subsequent increase in a bank's proportion of loans-to-assets, but no direct effect on bank closure outside of this …

Motivated by the regional bank crisis of 2023, we model the impact of interest rates on the liquidity risk of banks … valuable if depositors remain in the bank. This creates run incentives for uninsured depositors. We show that a run equilibrium … the bank. The liquidity risk of the bank thus increases with interest rates. We provide a formula for the bank's optimal …

Inspired by the Silicon Valley Bank run and building on Diamond- Dybvig (1993), we develop a model in which asset price … fluctuations can trigger bank runs. Liquidation amounts to selling assets at their market price. Depositors can buy and hold the …

locations of large-bank branches have demographics typically associated with greater financial sophistication, large-bank …

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 …

Bank liquid asset holdings vary significantly across banks and through time. The determinants of liquid asset holdings …

process of interstate bank deregulation that lowered barriers to competition across U.S. states over the 1980s and 1990s with … facing each individual bank. We find that regulatory-induced competition reduced liquidity creation. Consistent with some …