{"id":11822,"date":"2022-10-18T21:47:18","date_gmt":"2022-10-19T01:47:18","guid":{"rendered":"https:\/\/steelcityre.com\/?p=11822"},"modified":"2023-08-18T16:08:26","modified_gmt":"2023-08-18T20:08:26","slug":"shifting-expectations-bank-run","status":"publish","type":"post","link":"https:\/\/steelcityre.com\/2022\/10\/18\/shifting-expectations-bank-run\/","title":{"rendered":"October 18, 2022"},"content":{"rendered":"\n

Shifting Expectations: Bank Run<\/h2>\n\n\n\n

Douglas Diamond and Philip Dybvig won the Nobel Memorial Prize in economics this year for their work on (bank runs). \u201cA bank run in our model,\u201d they write, \u201cis caused by a shift in expectations, which could depend on almost anything, consistent with the apparently irrational observed behavior of people running on banks.\u201d \u201cAlmost anything\u201d could include social media rumors, why not. [\u2026] \u201cEvery banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone.\u201d <\/p>\n\n\n\n

Click on the image above to read more<\/strong> (Bloomberg Paywall).<\/p>\n\n\n\n

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A bank run in our model \u2026 is caused by a shift in expectations, which could depend on almost anything. <\/em><\/p>Bloomberg: October 18, 2022<\/cite><\/blockquote><\/figure>\n<\/div>\n\n\n\n

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Steel City Re is an insurance intermediary and risk advisor for reputation value and ESG-linked reputation risk. We offer solutions for measuring reputational risk and reputational value, governance strategies for overseeing reputation risk management frameworks, insurance, and reinsurance. Reputation and ESG insurance and reinsurance are strategic instruments boards use to signal to investors, bond raters, and the courts (and regulators) that their governance processes are effective.<\/p>\n\n\n\n

Reputation is Mission-Critical<\/strong><\/h2>\n\n\n\n

Shifting expectations: bank run. A management program for ethics and compliance can forestall prosecution and mitigate fines. Similarly, oversight of \u201cmission- critical\u201d issues can forestall securities litigation. A program for reputation resilience, comprising both risk management and insurance (reinsurance)-authenticated oversight for all that is mission-critical, can create value in many ways. To this end, Steel City Re offers a Reputation Resilience Program.<\/a><\/p>\n\n\n\n

Having a robust Reputation Resilience Program in place offers, amongst other benefits:<\/p>\n\n\n\n