What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying … a model of financial intermediation with an endogenously determined probability of a bank run, using global games. As an … alternative to bank deposits, consumers can also store their wealth in remunerated CBDC issued by the central bank. Consistent …

In crisis times, depositors get anxious, can run on banks, and withdraw their deposits. Correlated withdrawals of bank … deposits could be mitigated if bank deposits are more diversified, that is, held by more individuals. This paper examines the … link between the broader access to bank deposits prior to the 2008 crisis and the dynamics of bank deposit growth during …

between bank capital ratios and unused loan commitments and transaction deposits for depository institutions. We test … bank capital ratios of non-failed banks during the crisis. For failed banks, large levels of unused loan commitments seem …