On Freezing Depositor Funds at Financially Distressed Banks: An Experimental Analysis

B-Tier
Journal: Journal of Money, Credit, and Banking
Year: 2016
Volume: 48
Issue: 5
Pages: 989-1017

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article reports an experiment conducted to evaluate the effects of alterations in the terms of repayments to depositors following a liquidity suspension, as well as the effect of alterations in the publicity of information about withdrawal behavior on the fragility of distressed banks. Results indicate that a “tough” renegotiation stance of protecting depositors who maintain their money in the bank, can quite effectively promote stability. Information provided to depositors regarding past withdrawal behavior weakens the effectiveness of a tough renegotiation policy but reduces fragility somewhat for a more lenient rescheduling condition.

Technical Details

RePEc Handle
repec:wly:jmoncb:v:48:y:2016:i:5:p:989-1017
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25