EconPapers    
Economics at your fingertips  
 

The Impact of Deposit Insurance on Depositor Behavior During a Crisis: A Conjoint Analysis Approach

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

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: We investigate the effectiveness of initiating deposit insurance at the outset of a banking crisis. Using a conjoint analysis approach that allows us to consider the simultaneous impact of multiple deposit insurance attributes and various counterfactuals, we ask a multinational sample of respondents how they would view hypothetical account profiles following the failure of a large competing bank. Previous experience matters: respondents from countries without explicit deposit insurance exhibit greater withdrawal risk, suggesting that the introduction of deposit insurance during a crisis may be only partially successful in preventing bank runs. They also impose a higher deposit interest rate premium. Having a long-term bank relationship reduces withdrawal risk, as does the absence of co-insurance.

Keywords: banking crises; Conjoint analysis; deposit insurance; bank runs (search for similar items in EconPapers)
JEL-codes: G01 G21 (search for similar items in EconPapers)
Date: 2015-03-20
References: Add references at CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Forthcoming in Journal of Financial Intermediation

Downloads: (external link)
http://dx.doi.org/10.1016/j.jfi.2015.02.001

Related works:
Journal Article: The impact of deposit insurance on depositor behavior during a crisis: A conjoint analysis approach (2015) Downloads
Working Paper: The impact of deposit insurance on depositor behavior during a crisis: A conjoint analysis approach (2015) Downloads
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:isu:genres:38656

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().

 
Page updated 2020-11-26
Handle: RePEc:isu:genres:38656