Preventing (panic) bank runs

Kiss, Hubert János; Rodríguez-Lara, Ismael; Rosa‐García, Alfonso

doi:10.1016/j.jbef.2022.100697

Cited by 6 publications

(3 citation statements)

References 54 publications

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“…Recent evidence suggests that banking and finance (see e.g. Dufwenberg 2015, Kiss et al 2022 Recent experiments closely related to our paper use experimental methods to study bank behavior (e.g. Bosch-Rosa 2018, Duffy et al 2019, or Davis et al 2020) and central bank policies (e.g.…”

Section: Introductionmentioning

confidence: 98%

Can Discount Window Stigma Be Cured? An Experimental Investigation

Armantier,

Holt

2024

Staff Reports (Federal Reserve Bank of New York)

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A core responsibility of a central bank is to ensure financial stability by acting as the “lender of last resort” through its Discount Window. The Discount Window, however, has not been effective because its usage is stigmatized. In this paper, we study experimentally how such stigma can be cured. We find that, once a Discount Window facility is stigmatized, removing stigma is difficult. This result is consistent with the Federal Reserve’s experiences which have been unsuccessful at removing the stigma associated with its Discount Window.

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Section: Introductionmentioning

confidence: 98%

Can Discount Window Stigma Be Cured? An Experimental Investigation

Armantier,

Holt

2024

Staff Reports (Federal Reserve Bank of New York)

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“…How safe depositors feel about their deposits and savings has now become the focus of interest for regulators (Arnold, 2019). Depositors' trust in the banking system is crucial for banks to perform and operate effectively (Alamsyah et al, 2020) and to prevent bank runs (Kiss et al, 2022). Depositors' behavior could be affected by several things, for example, bank risk (Mart ınez and Schmukler, 2001;Distinguin et al, 2013;Hasan et al, 2013), bank transparency (Chen et al, 2022), bank political connection (Claessens and Perotti, 2007;Claessens et al, 2008;Nys et al, 2014), deposit insurance scheme reforms (Hadad et al, 2011;Iyer and Puri, 2012;Karas et al, 2013), individual depositor background (Boyle et al, 2022) and fear brought about by information and bad news (Arnold, 2019;Fecht et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Depositors' trust in the banking system is crucial for banks to perform and operate effectively (Alamsyah et al. , 2020) and to prevent bank runs (Kiss et al. , 2022).…”

Section: Introductionmentioning

confidence: 99%

Google Trends, bank popularity and depositors' fears in Indonesia

Saputro,

Pamungkas,

Trinugroho

et al. 2024

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PurposeThis paper investigated whether a bank’s popularity and depositors' fear of Google search volume could affect bank deposits and credit.Design/methodology/approachThe authors used two different quarterly data from Google Trends and banking data from 2012 Q1 to 2020 Q1. Based on available data, Google Trends data start from 2012. The authors exclude data after 2020 Q1 because the Covid-19 pandemic arguably increased the volume of Internet users due to shifting behavior to online activities. They merged and cleaned the data by winsorizing at 5 and 95 percentiles to avoid any outlier problems, reaching 74 banks in the sample. They used panel data estimation of quarterly data following Levy-Yeyati et al. (2010) and Trinugroho et al. (2020).FindingsThe results show that a higher search volume of a bank’s name leads to higher deposits. A higher search volume of depositor fear reduces deposits and credit. The authors also found that banks with high risk and a high search volume of their name have a significantly lower volume of deposits.Originality/valueTo the best of the authors’ knowledge, not many papers in banking and finance have used Google Trends data to gauge related issues regarding depositors' behavior. The authors have filled a gap in the literature by investigating whether the popularity of Google search and depositors' fear could impact deposits and credit. This study also attempted to establish whether Google Trends data could be a reliable source of information to predict depositors' behavior by using a Zscore to measure bank risk.

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Decentralized lending and its users: Insights from compound

Saengchote

2023

Journal of International Financial Markets, Institutions and Mo

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Preventing (panic) bank runs

Cited by 6 publications

References 54 publications

Can Discount Window Stigma Be Cured? An Experimental Investigation

Can Discount Window Stigma Be Cured? An Experimental Investigation

Google Trends, bank popularity and depositors' fears in Indonesia

Decentralized lending and its users: Insights from compound

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