Abstract

Financial crises are occurring frequently in Asia, Europe, and America, and it is important for banks to investigate strategies for such crises. The objective of this research is to build a model for bank runs by deposit holders in financial crises, and use that model to present a framework for estimating the amounts of deposit withdrawals during financial crises. By carrying out detailed investigation of the bank run model thus constructed, we clarified that the characteristics of customers and branch locations both bring about differences in bank runs. Our estimated amounts of deposit withdrawals during financial crises suggest that each branch should adopt a customer strategy appropriate for the variety of customers of that branch. The bank run model proposed in this research can also be applied to other marketing strategy planning, and has wide applicability.

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