Template-Type: ReDIF-Paper 1.0
Author-Name: Viral V.  Acharya
Author-Name-First: Viral V. 
Author-Name-Last: Acharya
Author-Email: vacaharya@stern.nyu.edu
Author-Workplace-Name: New York University, Stern School of Business.
Author-Name: Abhiman  Das
Author-Name-First: Abhiman 
Author-Name-Last: Das
Author-Email: abhiman@iima.ac.in
Author-Workplace-Name: Indian Institute of Management Ahmedabad, India.
Author-Name: Nirupama  Kulkarni
Author-Name-First: Nirupama 
Author-Name-Last: Kulkarni
Author-Email: nirupama.kulkarni@cafral.org.in
Author-Workplace-Name: CAFRAL, Reserve Bank of India, Mumbai, India.
Author-Name: Prachi  Mishra
Author-Name-First: Prachi 
Author-Name-Last: Mishra
Author-Email: prachi.mishra@ashoka.edu.in
Author-Workplace-Name: Department of Economics and Isaac Center for Public Policy, Ashoka University
Author-Name: Nagpurnanand  Prabhala
Author-Name-First: Nagpurnanand 
Author-Name-Last: Prabhala
Author-Email: prabhala@jhu.edu
Author-Workplace-Name: The Johns Hopkins University Carey Business School, Washington, DC.
Title: Deposit and Credit Reallocation in a Banking Panic: The Role of State- Owned Banks
Abstract: We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits, which migrate to state-owned public sector banks (PSBs) that serve as safe havens. We trace the consequences of the deposit reallocation using bank branch-level balance sheet and firm-bank lending data. The flight to safety is not a flight to quality. Lending shrinks and credit quality improves in run banks, but worsens in PSBs receiving the flight-to-safety flows. The reallocation of resources is not efficient in the aggregate.
length: 71
Creation-Date: 20250210
Revision-Date: 
Publication-Status: 
File-URL: https://dp.ashoka.edu.in/ash/wpaper/paper140_0.pdf
File-Format: Application/pdf 
Number: 140
Handle: RePEc:ash:wpaper:140