When prime depositors run on the banks: A behavioral approach

Natanael Waraney Gerald Massie, Chaikal Nuryakin

Research output: Contribution to journalArticlepeer-review


This paper examines the effect of two psychological attributes, namely an individual's risk and time preference, on withdrawal decisions. Our sample is a pool of prime depositors in Indonesia, mainly due to the country's deposit market being heavily concentrated on such depositors. We find that most of the prime depositors are risk averse long-term depositors. The regression results show that there is a significant correlation between the decision to withdraw and individual risk and time preference in most economic shock scenarios. The study concludes that a bank-run could happen if the rupiah depreciates by approximately 27% (from Rp 13,436 to Rp 17,000) and when there is a medium or a large bank failure.

Original languageEnglish
Pages (from-to)139-152
Number of pages14
JournalBuletin Ekonomi Moneter dan Perbankan
Issue number1
Publication statusPublished - 29 Feb 2020


  • Bank run
  • Prime depositors
  • Risk preference
  • Time preference
  • Withdrawal decision


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