Okay yes, I agree that a driver of bank runs is the knowledge that the bank usually can’t cover all deposits, by design. So as long as you keep that fact secret you’re much less likely to face a run.
I am now unsure how to reason about the likelihood of a run-like scenario in this case.
Okay yes, I agree that a driver of bank runs is the knowledge that the bank usually can’t cover all deposits, by design. So as long as you keep that fact secret you’re much less likely to face a run.
I am now unsure how to reason about the likelihood of a run-like scenario in this case.