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Information Management in Times of Crisis

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Abstract

How does information management and control affect bank stability? Following a national bank holiday in 1933, New York state bank regulators suspended the publication of balance sheets of state-charter banks for two years, whereas the national-charter bank regulator did not. We use this divergence in policies to examine how the suspension of bank-specific information affected depositors. We find that state-charter banks experienced significantly less deposit outflows than national-charter banks in 1933. However, the behavior of bank deposits across both types of banks converged in 1934 after the introduction of federal deposit insurance.

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  • Haelim Anderson & Adam Copeland, 2019. "Information Management in Times of Crisis," Staff Reports 907, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednsr:86679
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    More about this item

    Keywords

    banking crisis; depositor confidence; bank opacity; information management; Great Depression;
    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
    • N22 - Economic History - - Financial Markets and Institutions - - - U.S.; Canada: 1913-

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