This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

We employ proprietary data from a large bank to analyze how - during crisis - deposit insurance affects depositor … deposit insurance limit and the implicit deposit insurance had the intended calming effect on depositors. Close depositor-bank …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

This paper studies bank runs in an extended Diamond and Dybvig model. The model is extended in two ways. One, agents … for bank runs is ambiguous property rights. Sequential conversion is an example of such ambiguity. Demand deposit … insurance eliminates this ambiguity. In this regard, we characterize conditions on the economy where banks can preclude bank …

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 1.2% and that of significant deposit withdrawals 12.7%; (ii …

disappears, consistent with the attractiveness of higher returns being offset by increased doubts about bank solvency. The …

deposits are a primary driver backing the same asymmetric relation between domestic bank deposits and the stock market, and are …

-2009 financial crisis. We show that the propensity of households to withdraw deposits increases with the severity of bank distress …. Withdrawal risk is, however, substantially mitigated by strong bank-client relationships. Considering the most distressed bank in … our sample, 23 percent of its clients shifted deposits away from the bank during the crisis. Our estimates suggest that …