Deposit Insurance, Bank Ownership and Depositor Behavior

Sumeyra Atmaca, Karolin Kirschenmann, Steven Ongena and Koen Schoors
Additional contact information
Sumeyra Atmaca: Ghent University

No 21-56, Swiss Finance Institute Research Paper Series from Swiss Finance Institute

Abstract: We employ proprietary data from a large bank to analyze how – in times of crisis – depositors react to a bank nationalization, re-privatization and an accompanying increase in deposit insurance. Nationalization slows depositors fleeing the bank, provided they have sufficient trust in the national government, while the increase in deposit insurance spurs depositors below the new 100K limit to deposit more. Prior to nationalization, depositors bunch just below the then-prevailing 20K limit. But they abandon bunching entirely during state-ownership, to return to bunching below the new 100K limit after re-privatization. Especially depositors with low switching costs are moving money around.

Keywords: deposit insurance; coverage limit; bank nationalization; depositor heterogeneity (search for similar items in EconPapers)
JEL-codes: G21 G28 H13 N23 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2021-01
New Economics Papers: this item is included in nep-ban, nep-ias and nep-isf
References: Add references at CitEc
Citations:

Downloads: (external link)
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3766016 (application/pdf)

Related works:
Working Paper: Deposit Insurance, Bank Ownership and Depositor Behavior (2020)
Working Paper: Deposit Insurance, Bank Ownership and Depositor Behavior (2020)
Working Paper: Deposit insurance, bank ownership and depositor behavior (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:chf:rpseri:rp2156

Access Statistics for this paper

More papers in Swiss Finance Institute Research Paper Series from Swiss Finance Institute Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().