منابع مشابه
Money and Modern Banking without Bank Runs
Bank runs in the literature take the form of withdrawals of demand deposits payable in real goods, which deplete a xed reserve of goods in the banking system. That framework describes traditional bank runs based on currency withdrawals as occurred historically in the U.S. and more recently in developing countries. However, in a modern banking system, large withdrawals typically take the form o...
متن کاملBank Runs without Consumers’ Panic∗
In a version of the Diamond and Dybvig [3] model with aggregate uncertainty, we show that there exist an equilibrium with the following properties: all consumers deposit at the bank, all patient consumers wait for the last period to withdraw and the bank fails with strictly positive probability. Furthermore, we show that the probability of a bank failure remains bounded away from zero as the nu...
متن کاملHerding and bank runs
Traditional models of bank runs do not allow for herding e¤ects, because in these models withdrawal decisions are assumed to be made simultaneously. I extend the banking model to allow a depositor to choose his withdrawal time. When he withdraws depends on his consumption type (patient or impatient), his private, noisy signal about the quality of the banks portfolio, and the withdrawal histori...
متن کاملBank Portfolio Restrictions and Equilibrium Bank Runs
and Headnote We put “runs” back in the bank runs literature. A unified bank, one that invests in both liquid and illiquid assets, can easily avoid runs but it still faces a small probability of non-run rationing of depositors. In a separated financial system, the bank only holds relatively liquid assets; it is subject to runs with small probability, but because of its overinvestment in the liqu...
متن کاملBank incentives, contract design and bank runs
We study the Diamond-Dybvig [3] model as developed in Green and Lin [5] and Peck and Shell [7]. We dispense with the notion of a bank as a coalition of depositors. Instead, our bank is a self-interested agent with a technological advantage in recordkeeping. We examine the implications of the resulting agency problem for the design of bank contracts and the possibility of bank-run equilibria. Fo...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2006
ISSN: 1556-5068
DOI: 10.2139/ssrn.889427