Deposit Inflows and Outflows in Failing Banks: The Role of Deposit Insurance

The authors thank the Editor (Amit Seru), the Associate Editor, and anonymous referees, as well as seminar and conference participants at the Adam Smith Workshops (Paris), AFA Annual Meetings, Avoiding and Resolving Banking Crises Conference (Amsterdam), Banking Research Conference, Basel Research Task Force Conference, Biennial International Association of Deposit Insurers Research Conference (Basel), Chicago Financial Institutions Conference, Conference for Banking Development Stability and Sustainability (Santiago), Conference on Financial Stability: Markets and Spillovers, Duke University, FMA Annual Meeting, Interagency Early Warning Model Workshop, EEA Conference, Federal Financial Institutions Examination Council Conference, Federal Reserve Short-Term Funding Markets Conference, FIRS Conference (Hong Kong), Fixed Income and Financial Institutions Conference, Johns Hopkins University, Mid-Atlantic Research Conference, NBER Corporate Finance Conference, NBER Monetary Economics Conference, NYU, OFR, University of Pennsylvania Institute for Law and Economics, and Washington University Corporate Finance Conference for comments and suggestions. We thank Giuseppe Boccuzzi, Paul Calem, Giovanni Calice, Mark Egan, Kinda Hachem, Allen Berger, Ali Hortaçsu, Rustom Irani, Ed Kane, Dasol Kim, Diana Knyazeva, Carlos Noton, George Pennachi, Raluca Roman, Richard Rosen, Glenn Schepens, Amit Seru, Philipp Schnabl, Steven L. Schwarcz, Pablo Slutzky, Günseli Tümer-Alkan, Guillaume Vuillemey, Larry Wall, James Wilcox, and members of the FDIC for comments and helpful feedback. This paper was written while Christopher Martin and Alexander Ufier were employees of FDIC. Manju Puri was under an IPA with FDIC and subsequently on contract. The data are sensitive and proprietary to the FDIC and cannot be released. FDIC had the right to review this manuscript. The views expressed herein are those of the authors and do not necessarily reflect the views of the Federal Deposit Insurance Corporation or the National Bureau of Economic Research.

• May 9, 2018