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: Using high-frequency interbank payments data to trace deposit flows in March 2023, we identify twentytwo bank runs — ten times the two bank failures. Runs are driven by relatively few but large depositors fleeing to the largest banks and out of the banking system altogether. Run banks’ characteristics highlight a role for both fundamental and non-fundamental drivers of runs, including solvency, liquidity, deposit concentration and coordination through public signals. Surviving banks bridge the deposit reallocation by borrowing from Federal Home Loan Banks and the discount window, eventually replacing lost uninsured deposits with insured deposits at higher rates in the medium term.

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: 77
Date: 2024-05-01
New Economics Papers: this item is included in nep-ban, nep-fdg, nep-inv and nep-mon
Note: Revised June 2026.
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Citations: View citations in EconPapers (15)

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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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