We analyze how the deregulation of Fintech investing affects banks’ deposit funding costs in the US. Using the … exogenous removal of marketplace investing restrictions by US states, we show the cost of bank deposits increases by … approximately 2.26%. The effects are attributable to deregulation provoking more intense deposit competition that reduces deposit …

side of the model. The calibrated model possesses multiple equilibria with bank-run features, suggesting that banks can be … very fragile. We use our model to analyze proposed bank regulations. For example, our results suggest that a capital …