Too big to fail (Oliveira, Schiozer and Barros)

Too big to fail perception by depositors: an empirical investigation, by Raquel de F. Oliveira, Rafael F. Schiozer and Lucas A. B. de C. Barros, published by Bacen. “Taken together, our results are consistent with the idea that depositors ran from the smaller banks to the largest banks because they believed the largest banks were too big to fail. We also find that institutional investors had an important role in inducing the behavior of other depositors during the crisis: banks that had relatively more deposits of institutional investors  ex-ante suffered more deposit outflows throughout the crisis.”