Report
Tracing Bank Runs in Real Time
Abstract: We use high-frequency interbank payments data to trace deposit flows in March 2023 and identify twenty-two banks that suffered a run, significantly more than the two that failed but fewer than the number that experienced large negative stock returns. The runs were driven by a small number of large depositors and were related to weak fundamentals. However, we find evidence for the importance of coordination because run banks were disproportionately publicly traded and many banks with similarly bad fundamentals did not suffer a run. Banks survived the run by borrowing new funds and raising deposit rates, not by selling securities.
Keywords: bank runs; payments; coordination; public signals;
JEL Classification: E41; E58; G01; G21; G28;
https://doi.org/10.59576/sr.1104
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Staff Reports
Publication Date: 2024-05-01
Number: 1104
Note: Revised September 2024.