Depositor Responses to a Banking Crisis: Are Finance Professionals Special?

Glenn Boyle (), Roger Stover, Amrit Tiwana and Oleksandr Zhylyevskyy

Working Papers in Economics from University of Canterbury, Department of Economics and Finance

Abstract: We use a conjoint analysis of 551 subjects to compare the reaction of finance professionals to news of a banking crisis with the reactions of non-finance professionals and graduate students. All three groups make greater deposit withdrawals if deposit insurance protection involves a haircut, but the response of finance professionals is more nuanced: compared to non-finance professionals and students, they seem to care about haircuts mainly when bank capitalization is low and less so when capitalization is high. Both finance and nonfinance professionals are more concerned about the pre-funding of deposit insurance than are students. Overall though, the greater banking sector knowledge and experience presumably possessed by finance professionals does not seem to automatically translate into significantly different crisis-response behavior.

Keywords: Banking crisis; Finance professionals; Deposit withdrawals (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2022-02-01
New Economics Papers: this item is included in nep-ban, nep-ias and nep-isf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Depositor responses to a banking crisis: Are finance professionals special? (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:cbt:econwp:22/03

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