{"id":8029,"date":"2019-10-17T14:35:07","date_gmt":"2019-10-17T12:35:07","guid":{"rendered":"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/"},"modified":"2019-10-17T14:35:07","modified_gmt":"2019-10-17T12:35:07","slug":"bank-competition-bank-runs-and-opacity","status":"publish","type":"events","link":"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/","title":{"rendered":"Bank Competition, Bank Runs and Opacity"},"content":{"rendered":"<section class=\"wp-block-unilux-blocks-free-section section\"><div class=\"container xl:max-w-screen-xl\"><p><strong>Abstract<\/strong><\/p><p>We examine the competition among and the opacity of banks<\/p><p>subject to rollover risk. Banks imperfectly compete for uninsured<\/p><p>deposits and choose the opacity of their risky investment. In a<\/p><p>static setup, higher bank competition increases the deposit rate,<\/p><p>which increases withdrawal incentives due to strategic<\/p><p>complementarity and thus raises bank fragility. In a dynamic setup<\/p><p>with entry, a theory of bank opacity arises. Opacity trades off a<\/p><p>static cost of larger withdrawals and costly liquidation of investment<\/p><p>with a dynamic benefit of deterring entry and reducing future<\/p><p>competition. We use our framework to evaluate the regulation of<\/p><p>competition or transparency. We find that greater competition<\/p><p>increases deposit rates, fragility, and transparency, while minimum<\/p><p>transparency regulation increases both current and future fragility<\/p><p>and future competition.<\/p><\/div><\/section>","protected":false},"excerpt":{"rendered":"<p>AbstractWe examine the competition among and the opacity of bankssubject to rollover risk. Banks imperfectly compete for uninsureddeposits and choose the opacity of their risky investment. In astatic setup, higher bank competition increases the deposit rate,which increases withdrawal incentives due to strategiccomplementarity and thus raises bank fragility. In a dynamic setupwith entry, a theory of bank opacity arises. Opacity trades off astatic cost of larger withdrawals and costly liquidation of investmentwith a dynamic benefit of deterring entry and reducing futurecompetition. We use our framework to evaluate the regulation ofcompetition or transparency. We find that greater competitionincreases deposit rates, fragility, and transparency, while minimumtransparency regulation increases both current and future fragilityand future competition.<\/p>\n","protected":false},"author":0,"featured_media":8030,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"featured_image_focal_point":[],"show_featured_caption":false,"ulux_newsletter_groups":"","uluxPostTitle":"","uluxPrePostTitle":"","_trash_the_other_posts":false,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"event_start_date":"2019-12-02 12:30:00","event_end_date":"2019-12-02 13:45:00","event_speaker_name":"Toni Ahnert \u2013 Bank of Canada","event_speaker_link":"","event_is_online":false,"event_location":"University of Luxembourg\r\nMetz\/Nancy Room\r\n29 Boulevard J.-F. Kennedy\r\nL-1855 Luxembourg","event_street":"","event_location_link":"","event_zip_code":"","event_city":"","event_country":"LU"},"events-topic":[309],"events-type":[],"organisation":[116,101,226],"authorship":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.3 (Yoast SEO v22.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bank Competition, Bank Runs and Opacity - Universit\u00e9 du Luxembourg<\/title>\n<meta name=\"description\" content=\"AbstractWe examine the competition among and the opacity of bankssubject to rollover risk. Banks imperfectly compete for uninsureddeposits and choose the opacity of their risky investment. In astatic setup, higher bank competition increases the deposit rate,which increases withdrawal incentives due to strategiccomplementarity and thus raises bank fragility. In a dynamic setupwith entry, a theory of bank opacity arises. Opacity trades off astatic cost of larger withdrawals and costly liquidation of investmentwith a dynamic benefit of deterring entry and reducing futurecompetition. We use our framework to evaluate the regulation ofcompetition or transparency. We find that greater competitionincreases deposit rates, fragility, and transparency, while minimumtransparency regulation increases both current and future fragilityand future competition.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank Competition, Bank Runs and Opacity\" \/>\n<meta property=\"og:description\" content=\"AbstractWe examine the competition among and the opacity of bankssubject to rollover risk. Banks imperfectly compete for uninsureddeposits and choose the opacity of their risky investment. In astatic setup, higher bank competition increases the deposit rate,which increases withdrawal incentives due to strategiccomplementarity and thus raises bank fragility. In a dynamic setupwith entry, a theory of bank opacity arises. Opacity trades off astatic cost of larger withdrawals and costly liquidation of investmentwith a dynamic benefit of deterring entry and reducing futurecompetition. We use our framework to evaluate the regulation ofcompetition or transparency. We find that greater competitionincreases deposit rates, fragility, and transparency, while minimumtransparency regulation increases both current and future fragilityand future competition.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/\" \/>\n<meta property=\"og:site_name\" content=\"UNI FR\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/uni.lu\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/11\/2026\/03\/03120045\/UNIV_SM-Profile_1600x1600px-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"2560\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Dur\u00e9e de lecture estim\u00e9e\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/\",\"url\":\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/\",\"name\":\"Bank Competition, Bank Runs and Opacity - Universit\u00e9 du Luxembourg\",\"isPartOf\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.uni.lu\/fr\/events\/bank-competition-bank-runs-and-opacity\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.uni.lu\/wp-content\/uploads\/sites\/11\/2019\/10\/bank_competition_bank_runs_and_opacity.jpg\",\"datePublished\":\"2019-10-17T12:35:07+00:00\",\"dateModified\":\"2019-10-17T12:35:07+00:00\",\"description\":\"AbstractWe examine the competition among and the opacity of bankssubject to rollover risk. 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