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I study the relation between shadow banking and financial stability in an economy in which banks are susceptible to self-fulfilling runs and in which government-backed deposit insurance is limited. Shadow banks issue only uninsured deposits while commercial banks issue both insured and uninsured...
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This paper assesses the impact of exchange of information on foreign-owned bank deposits in international financial … is associated on average with a statistically significant 22% reduction in IFC bank deposits held by non-IFC counterparty …
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. Yet, many banks suddenly experience funding dry-ups. Dry-ups predict, but do not cause, future deterioration of bank …
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