01689cas a2200253 a 4500 AALejournalIMF002742 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875409 1018-5941 BD-DhAAL BD-DhAAL McDill, Kathleen. Dynamic Depositor Discipline in U.S. Banks / Kathleen McDill, Andrea Maechler. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the presence of depositor discipline in the U.S. banking sector. We test whether depositors penalize (discipline) banks for poor performance by withdrawing their uninsured deposits. While focusing on the movements in uninsured deposits, we also account for the possibility that banks may be forced to pay a risk premium in the form of higher interest rates to induce depositors not to withdraw their uninsured deposits. Our results support the existence of depositor discipline: a weak bank may not necessarily be able to stop a deposit drain by raising its uninsured deposit interest rates. Mode of access: Internet Maechler, Andrea. IMF Working Papers; Working Paper ; No. 2003/226 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/226/001.2003.issue-226-en.xml IMF e-Library