Depositors’ Perception of ‘Too-Big-to-Fail’

Título: Depositors’ Perception of ‘Too-Big-to-Fail’

Autores: Raquel Oliveira, Rafael Schiozer, Lucas Ayres Barros

Resumo: We exploit the exogenous shock to the Brazilian banking system caused by the international turmoil of 2008 and find evidence that the run to systemically important banks is better explained by the perception of a too-big-to-fail policy than by bank fundamentals. We infer that the extra inflow of deposits received by systemically important banks during crises gives them an important competitive advantage. Our analysis also indicates that a bank’s share of funding from institutional investors affects the nonfinancial firms’ and institutional investors’ decision to run.

Data de publicação: 2015

Periódico/Editora: Review of Finance

Edição: 19

Palavras-chave: Banks, Government Policy and Regulation, Finance