Posts Tagged ‘deposits’
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Participants withdrew their funds more slowly when they were informed about the previous actions of their cohorts and when there was deposit insurance—even when that insurance was only partial.
NYU (US)—Healthy relationships thrive on communication, including the relationship between a bank and its depositors. A recent study by economists at New York University and the Federal Reserve Bank of New York suggests that the best way to avoid a bank run during a financial crisis is to keep depositors informed. Continue…
