We examine the role of uninsured depositors in the 2023 Regional Banking Crisis by
emphasizing that they are valuable clients who demand loans. Banks with more uninsured …

We assess the efficacy of systemic risk measures that rely on US financial firms' stock return
comovements with market-or sector-wide returns under stress from 1927 to 2023. We …

We analyze inertial coordination games: dynamic coordination games with an
endogenously changing state that depends on (i) a persistent fundamental that players …

We examine how investors' perception of bank balance sheet risk evolved before and during
the March-April 2023 bank run. To do so, we estimate the covariance (“beta”) of bank excess …

We study how corporate clients react to bank distress on both sides of the bank's balance
sheet, using the 2017 failure of two regional banks in Italy. We find that deposit runs from …

Bank depositors now have access to instant (real-time) money transfer and payment
services. Therefore, in events such as bank runs, depositors are able to drain their bank …

Does monetary policy affect funding vulnerabilities of the banking system? I show that
contractionary monetary policy shocks cause an aggregate outflow of retail deposits and an …

We construct a measure of systemic risk, DRSFIN, that combines the high frequency
information available in equity returns with a simple structural model of default. DRSFIN …

Abstract Diamond and Rajan (2000, 2001) argue that banks create liquidity by issuing
deposits to fund difficult, illiquid firms that otherwise cannot obtain funding. Since deposits …

In The Resilient Society, Brunnermeier (2023) considers lessons from the COVID-19
experience and other large shocks which could not have been anticipated, let alone …