Tracing Bank Runs in Real Time

Marco Cipriani, Thomas Eisenbach and Anna Kovner

No 1104, Staff Reports from Federal Reserve Bank of New York

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 that experienced large negative stock returns. The runs were driven by a small number of large depositors and were related to weak fundamentals. 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.

Keywords: bank runs; payments; coordination; public signals (search for similar items in EconPapers)
JEL-codes: E41 E58 G01 G21 G28 (search for similar items in EconPapers)
Pages: 48
Date: 2024-05-01
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-inv and nep-mon
Note: Revised December 2024.
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Citations: View citations in EconPapers (1)

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Working Paper: Tracing Bank Runs in Real Time (2024)
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DOI: 10.59576/sr.1104

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