A Bank by Any Other Name: Does Bank Renaming Influence Depositor Discipline?

We examine whether bank depositors respond to changes in corporate identity by studying the effects of bank name changes on deposit flows. Using a quarterly panel of U.S. banks from 2001 to 2024, we show that name changes are followed by a significant increase in deposit growth, with the strongest effects for uninsured deposits. This finding indicates that even low-cost changes in corporate identity can influence depositor behavior in an opaque industry. We explore the mechanisms underlying this effect. The increase in deposits is more pronounced for banks with weaker prior reputation, suggesting a reputation-based interpretation in which name change facilitates belief updating by depositors. We also find partial support for an attention channel, as the effect is stronger for smaller, less visible banks. By contrast, the response is not affected by aggregate uncertainty or banking sector distress. Finally, larger changes in bank names generate stronger deposit inflows, highlighting the role of identity-based signals in shaping depositor reactions. Our results contribute to the depositor discipline literature by identifying corporate identity as a determinant of deposit allocation.