{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,10,20]],"date-time":"2025-10-20T18:50:51Z","timestamp":1760986251345,"version":"3.40.5"},"reference-count":29,"publisher":"Institute for Operations Research and the Management Sciences (INFORMS)","issue":"4","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":["Management Science"],"published-print":{"date-parts":[[2025,4]]},"abstract":"<jats:p> We use disaggregated U.S. data and a border discontinuity design to show that more generous unemployment insurance (UI) policies lower bank deposits. We test several channels that could explain this decline and find evidence consistent with households lowering their deposit holdings due to reduced precautionary savings. Because deposits are the largest and most stable source of funding for banks, the decrease in deposits affects bank lending. Banks that raise deposits in states with generous UI policies reduce their loan supply to small businesses. Furthermore, counties that are served by these banks experience a higher unemployment rate and lower wage growth. <\/jats:p><jats:p> This paper was accepted by Lukas Schmid, finance. <\/jats:p><jats:p> Funding: G. Kabas acknowledges financial support from the European Research Council [ERC ADG 2016-GA 740272 lending]. <\/jats:p><jats:p> Supplemental Material: The online appendix and data files are available at https:\/\/doi.org\/10.1287\/mnsc.2022.03217 . <\/jats:p>","DOI":"10.1287\/mnsc.2022.03217","type":"journal-article","created":{"date-parts":[[2024,6,21]],"date-time":"2024-06-21T13:31:16Z","timestamp":1718976676000},"page":"2847-2866","source":"Crossref","is-referenced-by-count":1,"title":["Unintended Consequences of Unemployment Insurance Benefits: The Role of Banks"],"prefix":"10.1287","volume":"71","author":[{"ORCID":"https:\/\/orcid.org\/0000-0002-7664-3999","authenticated-orcid":false,"given":"Yavuz","family":"Arslan","sequence":"first","affiliation":[{"name":"Department of Economics, Management School, University of Liverpool, Liverpool L69 7ZH, United Kingdom"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-9974-0372","authenticated-orcid":false,"given":"Ahmet","family":"Degerli","sequence":"additional","affiliation":[{"name":"Financial Intermediaries Analysis Section, Monetary Affairs Division, Federal Reserve Board, Washington, District of Columbia 20006"}]},{"ORCID":"https:\/\/orcid.org\/0000-0001-7415-7017","authenticated-orcid":false,"given":"Gazi","family":"Kabas","sequence":"additional","affiliation":[{"name":"Department of Finance, Tilburg University, 5037AB Tilburg, Netherlands"}]}],"member":"109","reference":[{"key":"B1","doi-asserted-by":"publisher","DOI":"10.1086\/696272"},{"key":"B3","doi-asserted-by":"publisher","DOI":"10.1093\/revfin\/12.3.0579"},{"key":"B5","doi-asserted-by":"publisher","DOI":"10.1257\/pol.20160613"},{"key":"B6","doi-asserted-by":"crossref","unstructured":"Brown J, Matsa DA (2020) Locked in by leverage: Job search during the housing crisis. 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