Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/297327 
Year of Publication: 
2024
Series/Report no.: 
ECB Working Paper No. 2887
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Rapid and large deposit outflows from banks have regained attention in the context of the March 2023 demises of Credit Suisse, SVB and other regional US banks. Moreover, the possible introduction of CBDC or a marked success of stablecoins are perceived as additional clouds over the future of deposit funding. While the bank run literature rarely pays attention to where bank deposits can flow to, this paper distinguishes the different flow of funds mechanics across all possible destinations and reviews for each the current and prospective future factors that may contribute to the observed increase of the speed and size of bank runs. While some of these factors can be contained through policy measures, others, like the intensified competition between banks will inevitably stay, and bank balance sheet management and liquidity regulation need to accept the new normal of somewhat less stable and more expensive sight deposits.
Subjects: 
bank funding
bank runs
flows of funds
financial stability
liquidity crisis
JEL: 
E42
E51
G21
G23
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6367-1
Document Type: 
Working Paper

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