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Behavior of corporate depositors during a bank panic

Chernykh, Lucy; Mityakov, Sergey - In: Management science : journal of the Institute for … 68 (2022) 12, pp. 9129-9151

Persistent link: https://www.econbiz.de/10014285351

Savings, efficiency and the nature of bank runs

Leonello, Agnese; Mendicino, Caterina; Panetti, Ettore; … - 2022

Does the level of deposits matter for bank fragility and efficiency? In a banking model with endogenous bank runs and a consumption-saving decision, we show that the level of deposits has opposite effects on bank fragility depending on the nature of bank runs. In an economy with panic-driven...

Persistent link: https://www.econbiz.de/10012800556

The Initial Deposit Decision and the Occurrence of Bank Runs

de Jong, Johan - 2021

In studies of bank runs the initial deposit decision is typically not taken into account. However, it is unlikely that people will entrust money to a bank that they expect to fail in the near future. The aim of this study is to investigate to what extent this mechanism prevents bank runs. It...

Persistent link: https://www.econbiz.de/10013238824

Bank Runs and Self-Insured Bank Deposits

Jarrow, Robert A. - 2015

This paper studies bank runs in an extended Diamond and Dybvig model. The model is extended in two ways. One, agents have heterogeneous wealth and two, banks can invest in both liquid and illiquid assets. We argue that the underlying reason for bank runs is ambiguous property rights. Sequential...

Persistent link: https://www.econbiz.de/10013035797

Bank runs, portfolio choice, and liquidity provision

Ahnert, Toni; Elamin, Mahmoud - 2019

We examine the portfolio choice of banks in a micro-funded model of runs. To insure riskaverse investors against liquidity risk, competitive banks offer demand deposits. We use global games to link the probability of a bank run to the portfolio choice. Based upon interim information about risky...

Persistent link: https://www.econbiz.de/10012101651

Preventing bank runs

Andolfatto, David; Nosal, Ed; Sultanum, Bruno - In: Theoretical economics : TE ; an open access journal in … 12 (2017) 3, pp. 1003-1028

The work of Diamond and Dybvig, 1983 is commonly understood as a theory of bank runs driven by self …-fulfilling prophecies. Their contribution may alternatively be interpreted as a theory for preventing these bank runs. Absent aggregate risk …-run equilibrium, which suggests that Diamond and Dybvig, 1983 can be understood as a theory of bank runs. The use of direct mechanisms …

Persistent link: https://www.econbiz.de/10011744046

Preventing bank runs

Andolfatto, David; Nosal, Ed; Sultanum, Bruno - 2014

Diamond and Dybvig (1983) is commonly understood as providing a formal rationale for the existence of bank-run equilibria. It has never been clear, however, whether bank-run equilibria in this framework are a natural byproduct of the economic environment or an artifact of suboptimal contractual...

Persistent link: https://www.econbiz.de/10010439754

Two centuries of systemic bank runs

Jamilov, Rustam; König, Tobias; Mueller, Karsten; … - 2024

We study bank runs using a novel historical cross-country dataset that covers 184 countries over the past 200 years and combines a new narrative chronology with statistical indicators of bank deposit withdrawals. We document the following facts: (i) the unconditional likelihood of a bank run is...

Persistent link: https://www.econbiz.de/10015052095

Bank fragility and the incentives to manage risk

Ahnert, Toni; Bertsch, Christoph; Leonello, Agnese; … - 2024

Shocks to banks' ability to raise liquidity at short notice can lead to depositor panics, as evidenced by recent bank failures. Why don't banks take a more active role in managing these risks? In a standard bank-run model, we show that risk management failures are most prevalent when exposures...

Persistent link: https://www.econbiz.de/10015069721

Bank failure management in Greece : legal framework and role of the bank of greece

Hadjiemmanuil, Christos - 2024

Persistent link: https://www.econbiz.de/10014529137