Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168300
Authors: 
Hakenes, Hendrik
Schiephake, Eva
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Banking II C02-V3
Abstract: 
The fragility of financial institutions to panic runs depends on their liquidity base: the short term funds available to banks for investment regardless of the withdrawal option available to customers. Institutions that are able to offer higher yield curves are able to lure the liquidity base away from their competitors. Using the standard global games approach, we show that banks that attract a high liquidity base are less prone to panic runs, but the stability of the residual banks decreases.
JEL: 
G21
G28
H23
Document Type: 
Conference Paper

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