October 2023: Banks That Relied on Branches, Not Remote Depositors, Fared Better in Recent Turmoil

by Whitney Zhang

Referring to the NBER Working Paper Bank Branch Density and Bank Runs by Efraim Benmelech, Jun Yang, and Michal Zator this article points out that stock prices of banks with low branch density experienced larger declines around recent bank failures. The authors attribute these declines to a greater risk of large deposit outflows.

Link: The Digest No. 10, October 2023: Banks That Relied on Branches, Not Remote Depositors, Fared Better in Recent Turmoil