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Who Wil Run Their Bank?

Author

Listed:
  • Edwin Weinstein

    (The Brondesbury Group)

  • Gulnur Muradoglu

    (Queen Mary University of London)

Abstract

This study aims to identify how trust, awareness, household economics and demographic factors affect the nature and the number of people who will run a bank. The sample is drawn from seven countries. The findings focus on relationships that transcend country boundaries. The study is designed with four scenarios defined by presence/absence of deposit insurance and whether the person has their money in a troubled bank or not. The similarity of response across countries to these two key variables is strong. Across countries, under the least favourable conditions in our study, 56% of respondents said they would run their bank. Under the most favourable conditions, 21% of respondents said they would run. These massive differences have real implications for both policy and public communications.

Suggested Citation

  • Edwin Weinstein & Gulnur Muradoglu, 2023. "Who Wil Run Their Bank?," IADI Sponsored Papers 3, International Association of Deposit Insurers.
    • Handle: RePEc:awl:spopap:3
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    References listed on IDEAS

    as
    1. Bartiloro, Laura, 2011. "Is Your Money Safe? What Italians Know about Deposit Insurance," Working Papers 11-55, University of Pennsylvania, Wharton School, Weiss Center.
    2. Fabio Panetta & Thomas Faeh & Giuseppe Grande & Corrinne Ho & Michael R King & Aviram Levy & Federico M Signoretti & Marco Taboga & Andrea Zaghini, 2009. "An assessment of financial sector rescue programmes," BIS Papers, Bank for International Settlements, number 48.
    3. Rajkamal Iyer & Manju Puri, 2012. "Understanding Bank Runs: The Importance of Depositor-Bank Relationships and Networks," American Economic Review, American Economic Association, vol. 102(4), pages 1414-1445, June.
    4. Toshihiko Takemura & Takashi Kozu & Tetsuro Kobayashi, 2011. "The Empirical Study of Japanese Deposit Withdrawal Behaviors on Unstable Financial Environment," American Journal of Economics and Business Administration, Science Publications, vol. 3(2), pages 293-300, April.
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    Cited by:

    1. Van Roosebeke, Bert & Defina, Ryan & Wahyuni, Tri, 2023. "Uninsured Deposits: Relevance and Evolutions Over Time," MPRA Paper 117601, University Library of Munich, Germany.

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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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