A Tale of Two Runs: Depositor Responses to Bank Solvency Risk
Publication
, Journal Article
Iyer, R; Puri, M; Ryan, N
Published in: Journal of Finance
December 1, 2016
We examine heterogeneity in depositor responses to solvency risk using depositor-level data for a bank that faced two different runs. We find that depositors with loans and bank staff are less likely to run than others during a low-solvency-risk shock, but are more likely to run during a high-solvency-risk shock. Uninsured depositors are also sensitive to bank solvency. In contrast, depositors with older accounts run less, and those with frequent past transactions run more, irrespective of the underlying risk. Our results show that the fragility of a bank depends on the composition of its deposit base.
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Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
December 1, 2016
Volume
71
Issue
6
Start / End Page
2687 / 2726
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment
Citation
APA
Chicago
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MLA
NLM
Iyer, R., Puri, M., & Ryan, N. (2016). A Tale of Two Runs: Depositor Responses to Bank Solvency Risk. Journal of Finance, 71(6), 2687–2726. https://doi.org/10.1111/jofi.12424
Iyer, R., M. Puri, and N. Ryan. “A Tale of Two Runs: Depositor Responses to Bank Solvency Risk.” Journal of Finance 71, no. 6 (December 1, 2016): 2687–2726. https://doi.org/10.1111/jofi.12424.
Iyer R, Puri M, Ryan N. A Tale of Two Runs: Depositor Responses to Bank Solvency Risk. Journal of Finance. 2016 Dec 1;71(6):2687–726.
Iyer, R., et al. “A Tale of Two Runs: Depositor Responses to Bank Solvency Risk.” Journal of Finance, vol. 71, no. 6, Dec. 2016, pp. 2687–726. Scopus, doi:10.1111/jofi.12424.
Iyer R, Puri M, Ryan N. A Tale of Two Runs: Depositor Responses to Bank Solvency Risk. Journal of Finance. 2016 Dec 1;71(6):2687–2726.
Published In
Journal of Finance
DOI
EISSN
1540-6261
ISSN
0022-1082
Publication Date
December 1, 2016
Volume
71
Issue
6
Start / End Page
2687 / 2726
Related Subject Headings
- Finance
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1502 Banking, Finance and Investment