On Freezing Depositor Funds at Financially Distressed Banks: An Experimental Analysis

作者：Douglas D. Davis, Robert J. Reilly · 发表于：Journal of money credit and banking · 年份：2016 · DOI：10.1111/jmcb.12324 · 被引用次数：31 · 研究领域：Banking stability, regulation, efficiency、Islamic Finance and Banking Studies、Housing Market and Economics

This article reports an experiment conducted to evaluate the effects of alterations in the terms of repayments to depositors following a liquidity suspension, as well as the effect of alterations in the publicity of information about withdrawal behavior on the fragility of distressed banks. Results indicate that a “tough” renegotiation stance of protecting depositors who maintain their money in the bank, can quite effectively promote stability. Information provided to depositors regarding past withdrawal behavior weakens the effectiveness of a tough renegotiation policy but reduces fragility somewhat for a more lenient rescheduling condition.