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Resolution and Depositors' Trust: An Empirical Analysis of Three Resolution Cases in Poland

Author

Listed:
  • Malgorzata Iwanicz-Drozdowska

    (SGH-Warsaw School of Economics, Poland)

  • Lukasz Kurowski

    (SGH-Warsaw School of Economics, Poland)

  • Bartosz Witkowski

    (SGH-Warsaw School of Economics, Poland)

Abstract

This paper aims to evaluate the role of depositor-specific features in the behaviour of depositors in bank resolution processes. The study is based on a telephone interview conducted with 1,000 Poles, including customers of banks that have undergone resolution in recent years and basic statistics of resolved banks. We empirically verified which factors were significant for the decision on deposit non-withdrawal, which helps to avoid bank runs. Our findings indicate that trust in public institutions and the experience gained with age play a key role in overall depositors' behaviour. However, for resolutions, declared trust is replaced by objective, casespecific trust based on information about the resolution process and its consequences.

Suggested Citation

  • Malgorzata Iwanicz-Drozdowska & Lukasz Kurowski & Bartosz Witkowski, 2022. "Resolution and Depositors' Trust: An Empirical Analysis of Three Resolution Cases in Poland," IADI Sponsored Papers 1, International Association of Deposit Insurers.
    • Handle: RePEc:awl:spopap:1
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    References listed on IDEAS

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    More about this item

    Keywords

    deposit insurance; bank resolution;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation

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