depositors know that there are economic linkages between banks. The contagion of withdrawals is by a change in beliefs about bank …

depositors know that there are economic linkages between banks. The contagion of withdrawals is by a change in beliefs about bank …

depositors know that there are economic linkages between banks’. The contagion of withdrawals is by a change in beliefs about …

This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden … contagion is higher for banks with weaker fundamentals. Third, interbank linkages among surviving banks further propagate the … linkages act as an important channel of contagion and hold important policy implications. …

contagion only occurs if the correlation between the portfolios of banks is high enough. Without deposit insurance contagious … bank runs can impose such great losses on banks, that banks choose less correlated portfolios to avoid contagion altogether …

contagion only occurs if the correlation between the portfolios of banks is high enough. Without deposit insurance contagious … bank runs can impose such great losses on banks, that banks choose less correlated portfolios to avoid contagion altogether …