00000nam 2200000zi 4500 9.879713 CaOODSP 20221107165605 m go d f cr |n||||||||| 190925t20192019oncd #ob f000 0 eng d CaOODSP eng rda CaOODSP n-cn--- FB3-5/2019-37E-PDF Ahnert, Toni, author. Bank runs, portfolio choice, and liquidity provision / by Toni Ahnert and Mahmoud Elamin. Ottawa : Bank of Canada, 2019. ©2019 1 online resource (ii, 47 pages) : figures. text txt rdacontent computer c rdamedia online resource cr rdacarrier Bank of Canada staff working paper, 1701-9397 ; 2019-37 "September 2019." Includes bibliographical references (pages 27-28). "We examine the portfolio choice of banks in a micro-funded model of runs. To insure risk averse investors against liquidity risk, competitive banks offer demand deposits. We use global games to link the probability of a bank run to the portfolio choice. Based upon interim information about risky investment, banks liquidate investments to hold a safe asset. This partial hedge against investment risk reduces the withdrawal incentives of investors for a given deposit rate. As a result of the portfolio choice, (i) banks provide more liquidity ex ante (so banks offer a higher deposit rate), and (ii) the welfare of investors increases"--Abstract. gccst Financial institutions gccst Investments Elamin, Mahmoud, author. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2019-37. (CaOODSP)9.806221 PDF 1.46 MB https://publications.gc.ca/collections/collection_2019/banque-bank-canada/FB3-5-2019-37-eng.pdf