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 …

There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role … scheme are more stable and less likely to become insolvent. Involvement of the deposit insurer in bank failure resolution …

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 …