Withdrawal behaviour of depositors during economic crisis of a bank: An experimental study

We use experiments to analyze withdrawal behavior of bank depositors in times of economic crisis. To this end we propose a new experimental model that allows participants to employ a large variety of different strategic options to react within a realistic bank setting. The model supplements existing theoretical models and examines the influence of demographics, economic variables and the possibility to communicate. The key ndings are that the absence of communication possibilities triggers withdrawal behavior and economically, that the closing of the spread between the risk-free interest rate and the deposit rate, is what drives banks into problems.