In this paper, the authors present the results of an empirical study that attempts to analyse the risk of bank run in Geneva, Switzerland. Two similar surveys have been conducted upon two independent samples of Geneva...In this paper, the authors present the results of an empirical study that attempts to analyse the risk of bank run in Geneva, Switzerland. Two similar surveys have been conducted upon two independent samples of Geneva population （June 2008 and February 2009） to detect the existence of predictive signals leading to a bank run within the selected area. The authors discover that Geneva inhabitants are generally confident in Swiss banks; the risk of a bank run in the area is low. However, reliance to the national banking system is worsening： The number of people fearing about their savings and those thinking the default of a major Swiss bank as ＂possible＂ has significantly risen. Also, more and more people keep updated about the current financial crisis; overall trust in Swiss banks has slightly decreased.展开更多
In this paper we attempt to characterize the stability of shadow deposits in China with interest rate liberalization and fintech developments.We emphasize that shadow banks provide higher but riskier returns and such ...In this paper we attempt to characterize the stability of shadow deposits in China with interest rate liberalization and fintech developments.We emphasize that shadow banks provide higher but riskier returns and such characteristics affect the stability of shadow deposits.In our setting,the stability of shadow deposits is influenced by two offsetting effects,namely:the patience effect,which makes investors more willing to wait because of the potentially higher returns;and the uncertainty effect,which makes investors more likely to withdraw as a result of higher risk.Under liberalized interest rates,the patience effect will erode and the uncertainty effect will be heightened because the post-liberalization higher return of traditional banks undermines the importance of the extra return of shadow deposits to depositors,while preserving the importance of the risk aspect.Fintech development is modeled as a reduction in the withdrawal cost that facilitates runs.This affects the stability of shadow deposits because of their wider fintech reliance.Regulators should be cautious in pushing interest rate liberalization andfintech application alongside building a safety net for shadow banking.展开更多
文摘In this paper, the authors present the results of an empirical study that attempts to analyse the risk of bank run in Geneva, Switzerland. Two similar surveys have been conducted upon two independent samples of Geneva population （June 2008 and February 2009） to detect the existence of predictive signals leading to a bank run within the selected area. The authors discover that Geneva inhabitants are generally confident in Swiss banks; the risk of a bank run in the area is low. However, reliance to the national banking system is worsening： The number of people fearing about their savings and those thinking the default of a major Swiss bank as ＂possible＂ has significantly risen. Also, more and more people keep updated about the current financial crisis; overall trust in Swiss banks has slightly decreased.
基金Stephanie Chan acknowledges support from Central University Startup Fund Grant(No.20720181045)Yang Ji acknowledges the support from the National Natural Science Foundation of China(No.71803163)Central University Startup Fund Grant(No.20720181039).
文摘In this paper we attempt to characterize the stability of shadow deposits in China with interest rate liberalization and fintech developments.We emphasize that shadow banks provide higher but riskier returns and such characteristics affect the stability of shadow deposits.In our setting,the stability of shadow deposits is influenced by two offsetting effects,namely:the patience effect,which makes investors more willing to wait because of the potentially higher returns;and the uncertainty effect,which makes investors more likely to withdraw as a result of higher risk.Under liberalized interest rates,the patience effect will erode and the uncertainty effect will be heightened because the post-liberalization higher return of traditional banks undermines the importance of the extra return of shadow deposits to depositors,while preserving the importance of the risk aspect.Fintech development is modeled as a reduction in the withdrawal cost that facilitates runs.This affects the stability of shadow deposits because of their wider fintech reliance.Regulators should be cautious in pushing interest rate liberalization andfintech application alongside building a safety net for shadow banking.
