The Depositor Behind the Discipline: A Micro-Level Case Study of Hamilton Bank |
| |
Authors: | Andrew Mitsunori Davenport Kathleen Marie McDill |
| |
Institution: | (1) Federal Deposit Insurance Corporation, Chicago, IL, USA |
| |
Abstract: | Though uninsured depositors are recognized as a source of market discipline, the possible disciplinary effect of decisions
made by fully insured depositors have gone largely unexamined. Using proprietary administrative deposit data at the account
level, this paper analyzes depositor behavior at a recently failed institution. The results suggest that although uninsured
deposits exited at a greater rate than insured deposits, the vast majority of deposits withdrawn were fully insured. Among
types of deposit accounts, the rates of withdrawal for fully insured individual, joint, and trust accounts were relatively
high. Uninsured business account owners were highly sensitive to the bank's deteriorating condition. In contrast, owners of
uninsured individual retirement accounts effectively exerted no market discipline.
The opinions expressed in this paper are ours and do not necessarily reflect those of the Federal Deposit Insurance Corporation.
All errors are our own. |
| |
Keywords: | Depositor discipline Account types Uninsured Insured |
本文献已被 SpringerLink 等数据库收录! |
|