Finance Professionals’ Response to a Banking Crisis: An International Perspective

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Boyle, G., Kaiser, L., Stover, R., Tiwana, A., & Zhylyevskyy, O. (2020). Finance Professionals’ Response to a Banking Crisis: An International Perspective.

Publication type

Working Paper


Empirical evidence is limited on how the existence of deposit insurance inuences depositor behavior in a banking crisis. Most research is confined to a specific country and single deposit insurance system. We employ a quasi-experimental methodology to investigate how finance professionals from countries with a deposit insurance system (United States, Europe) and without deposit insurance (New Zealand) respond to news of a crisis. This approach enables an analysis of the effects of different configurations of a deposit insurance system, including insurance settings that are likely to be of interest to regulators but remain untried in practice. Our main inference from the estimation results is that the US finance professionals are quite different, in terms of the intended withdrawal behavior, from the European and New Zealand professionals. At the same time, differences between the European and New Zealand finance professionals are small. The differences in behavior appear consistent with the US finance professionals' having greater prior exposure to and practical knowledge of a long-standing deposit insurance system.


The Impact of Deposit Insurance on European Depositor Behavior in a Banking Crisis
Netzwerkprojekt, April 2014 until April 2016

The basic objective of this study is to test whether the monitoring activity of the European professional - defined as one with a meaningful level of financial knowledge - could be affected by ... more ...


Organizational Units

  • Chair in Business Administration, Banking and Financial Management
  • Institute for Finance