Bank runs and public communication

Last registered on August 24, 2023
View Trial History

Pre-Trial

Trial Information

General Information

Title
Bank runs and public communication
RCT ID
AEARCTR-0011965
Initial registration date
August 21, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
August 24, 2023, 6:25 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
United States of America
Region

Primary Investigator

Name
Damiano Sandri
Affiliation
BIS
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Francesco Grigoli
PI Affiliation
PI Name
Yuriy Gorodnichenko
PI Affiliation
PI Name
Olivier Coibion
PI Affiliation

Additional Trial Information

Status
Completed
Start date
2023-04-28
End date
2023-05-06
Keywords
Other
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Using a survey with information treatments conducted in the aftermath of SVB’s collapse, we study households’ perspectives on bank stability, the potential for panic-driven bank runs, and the role of public communication. When informed about SVB’s collapse, households become more likely to withdraw deposits. Leveraging hypothetical questions and the exogenous variation in beliefs generated by the information treatments, we show that households reallocate deposit withdrawals primarily into other banks and cash, with little passthrough into spending. Information about FDIC insurance and communication about bank stability by the Federal Reserve can reassure depositors, while communication from political leaders only influences their electoral base.
External Link(s)

Registration Citation

Citation
Coibion, Olivier et al. 2023. "Bank runs and public communication." AEA RCT Registry. August 24. https://doi.org/10.1257/rct.11965-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2023-04-28
Intervention End Date
2023-05-06

Primary Outcomes

Primary Outcomes (end points)
The key outcomes of the survey are measures of people's propensity to withdraw deposits, perceptions about bank risk, preferred portfolio allocation, and propensity to buy durable goods.
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Survey participants were randomly assigned to one control group and 4 treated groups. Treated groups were provided with information about the SVB's collapse, President Biden's and the Fed's statements about the solidity of the US banking sector, and information about deposit insurance. The survey assessed people's propensity to withdraw deposits before and after the treatments.
Experimental Design Details
Randomization Method
Randomization done by YouGov
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
5 groups
Sample size: planned number of observations
6,000
Sample size (or number of clusters) by treatment arms
about 1,000 per treated group
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

Post-Trial

Post Trial Information

Study Withdrawal

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials