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Brownbag: Marco Cipriani (Federal Reserve Bank of New York)

1 April @ 1:30 pm - 2:30 pm

Tracing Bank Runs in Real Time

Abstract
We use high-frequency interbank payments data to trace deposit flows in March 2023 and identify twenty-two banks that suffered a run, significantly more than the two that failed but fewer than the number with large negative stock returns. The runs were driven by a small number of large depositors and were related to weak balance-sheet characteristics. However, we find evidence for the importance of coordination because run banks were disproportionately publicly traded and many banks with similarly bad fundamentals did not suffer a run. Banks survived the run by borrowing new funds and raising deposit rates, not by selling securities.

Details

Date:
1 April
Time:
1:30 pm - 2:30 pm
Event Categories:
,
Website:
https://www.newyorkfed.org/research/economists/cipriani

Venue

Darden, FOB 294