| Autor: |
Agnese Leonello, Caterina Mendicino, Ettore Panetti, Davide Porcellacchia |
| Přispěvatelé: |
Leonello, Agnese, Mendicino, Caterina, Panetti, Ettore, Porcellacchia, Davide |
| Rok vydání: |
2022 |
| Předmět: |
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| Popis: |
Does the level of deposits matter for bank fragility and efficiency? In a banking model with endogenous bank runs and a consumption-saving decision, we show that the level of deposits has opposite effects on bank fragility depending on the nature of bank runs. In an economy with panic-driven runs, higher deposits make banks less fragile, while the opposite is true when runs are only driven by fundamentals. The effect of deposits is not internalized by depositors. A saving externality arises, leading to excessive fragility and insufficient liquidity provision. The economy features under-saving when runs are panic driven, and over-saving when fundamental driven. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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