The run for safety: Financial fragility and deposit insurance

Arbeitspapier

We study a run on uninsured deposits in Danish banks triggered by a reform that limited deposit insurance coverage. Using a unique dataset with information about all individual accounts in Danish banks, we show that the reform caused a 50% decrease in deposits above the insurance limit in non-systemic banks, but a much smaller decrease in systemic banks which experienced less withdrawals from uninsured accounts, but also more openings of new uninsured accounts. Our results highlight the significant risks from a differential reallocation of uninsured deposits across banks and, in turn, the need for high insurance limits during a crisis.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: EPRU Working Paper Series ; No. 2016-02

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Einlagensicherung ; Bankenliquidität ; Finanzsystem ; Dänemark

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Iyer, Rajkamal ; Jensen, Thais Lærkholm ; Johannesen, Niels ; Sheridan, Adam
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (wo): Copenhagen
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/175494
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ