I investigate the theoretical impact of central bank digital currency (CBDC) on a monopolistic banking sector. The … any way. CBDC may, in fact, lead to an expansion of bank deposits if CBDC competition compels banks to raise their deposit …

A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand … surprisingly di¢ cult to generate bank panic equilibria if one allows for a plausible degree of contractual flexibility. A common … minimum scale requirement. With this simple and empirically-plausible modification to the standard model, we find that bank …