Information management in times of crisis

How does information management and control affect bank stability? Following a national bank holiday in 1933, NY state bank regulators suspended the publication of balance sheets of state-charter banks for two years, whereas the national-charter bank regulator did not. This divergence in policies is used to examine how the suspension of bank-specific infor-mation affected depositors and the portfolio of assets held by banks. State-charter banks benefited, experiencing less deposit outflows than national-charter banks in 1933. Further, the behavior of bank deposits across both types of banks converged in 1934 after the in-troduction of the Federal Deposit Insurance Corporation.(c) 2023 Elsevier B.V. All rights reserved.