Using weekly confidential data from U.S. banks, we document an unprecedented flight to safety of deposits from regional banks towards large banks in the early 2023. We show that large banks experienced large deposit inflows relative to small and regional banks and that these differences remain...

Since the 2008 financial crisis, policymakers and scholars have fixated on the problem of “too-big-to-fail” banks. This fixation, however, overlooks the historically dominant pattern in banking crises: the contemporaneous failure of many small institutions. We call this blind spot the...

We examine the impact of Fintech on banks. Digital innovations and technology based business models could provide new business opportunities for incumbents, by transforming how they create value and deliver products and services. Or they could disrupt the existing structure of the financial...

Bank competition and financial stability is a recurrent research issue, and researchers have begun to shed light on the competition effect on systemic-risk. Japan is an interesting case in this venue since its regional banking system has confronted intensified competition and there is growing...

Theory makes ambiguous predictions about the relationship between market structure and competitiveness of the banking system and banking sector stability. Empirical studies focusing on individual countries provide similarly ambiguous results, while cross-country studies point mostly to a...

The passage of the Dodd-Frank Act (“Act”) has left many leaders of community banks wondering how their businesses will be impacted. While much of the Act (and the majority of media coverage) focuses on larger institutions, the Act will directly and indirectly affect the business of community...