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Staff Reports

Tracing Bank Runs in Real Time

Number 1104
May 2024 Revised May 2024

JEL classification: E41, E58, G01, G21, G28

Authors: Marco Cipriani, Thomas M. Eisenbach, and Anna Kovner

We use high-frequency interbank payments data to trace deposit flows in March 2023 and identify twenty-two banks that suffered a run, significantly more than the two that failed but fewer than the number that experienced large negative stock returns. The runs were driven by large (institutional) depositors, rather than many small (retail) depositors. While the runs were related to weak fundamentals, we find evidence for the importance of coordination because run banks were disproportionately publicly traded and many banks with similarly bad fundamentals did not suffer a run. Banks that survived a run did so by borrowing new funds and then raising deposit rates, not by selling liquid securities.

Full Article

Author Disclosure Statement(s)

Marco Cipriani
The author declares that (s)he has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Thomas Eisenbach
I have no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Anna Kovner
I have no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Suggested Citation:
Cipriani, Marco, Thomas M. Eisenbach, and Anna Kovner. 2024. “Tracing Bank Runs in Real Time.” Federal Reserve Bank of New York Staff Reports, no. 1104, May. https://doi.org/10.59576/sr.1104

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