IDEAS home Printed from https://ideas.repec.org/a/eee/eecrev/v172y2025ics0014292124002447.html
   My bibliography  Save this article

Faster bank runs

Author

Listed:
  • Shy, Oz

Abstract

Bank depositors now have access to instant (real-time) money transfer and payment services. Therefore, in events such as bank runs, depositors are able to drain their bank account faster than ever before. In addition, the increased use of social media accelerates the spread of bank run information. This article analyzes the policy implications of “faster” bank runs on (i) the optimal delay in bailing out a bank, and consequently (ii) the optimal liquidity reserve requirement. The first one is an ex-post policy decision (after the run begins) whereas the second one is an ex-ante long-term decision.

Suggested Citation

  • Shy, Oz, 2025. "Faster bank runs," European Economic Review, Elsevier, vol. 172(C).
    • Handle: RePEc:eee:eecrev:v:172:y:2025:i:c:s0014292124002447
    DOI: 10.1016/j.euroecorev.2024.104915
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0014292124002447
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.euroecorev.2024.104915?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Faster bank runs; Instant money transfers; Bailout delay; Liquidity reserve requirement; Digital banking;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:172:y:2025:i:c:s0014292124002447. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eer .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.