Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
8965250 | Journal of Financial Economics | 2018 | 47 Pages |
Abstract
How should regulators design effective emergency lending facilities to mitigate stigma during a financial crisis? I explore this question using data from an unexpected disclosure of partial lists of banks that secretly borrowed from the lender of last resort during the Great Depression. I find evidence of stigma in that depositors withdrew more deposits from banks included on the lists in comparison with banks left off the lists. Overall, the results suggest that an emergency lending facility that never reveals bank identities would mitigate stigma.
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Accounting
Authors
Sriya Anbil,