McDill, Kathleen; Maechler, Andrea M. - International Monetary Fund (IMF) - 2003
This paper investigates the presence of depositor discipline in the U.S. banking sector. We test whether depositors … penalize (discipline) banks for poor performance by withdrawing their uninsured deposits. While focusing on the movements in … uninsured deposits, we also account for the possibility that banks may be forced to pay a risk premium in the form of higher …