The Essence of Information Asymmetry in Bank Run Crises: The Path to Improving the Bank's Risk Early Warning Mechanism

DOI: https://doi.org/10.62517/jbm.202509524

Author(s)

Yangjing Gao

Affiliation(s)

School of Jinqiu International, QingDao, China *Corresponding Author

Abstract

A run on the bank crisis, as the most typical manifestation of vulnerability in the financial system, is essentially a market failure caused by information asymmetry. This article reconstructs the theoretical framework of bank runs from the perspective of information economics, revealing that information asymmetry triggers systemic risks through a dual mechanism of the "sunspot effect" and herd behavior. By analyzing the inherent contradictions in the balance sheets of banks, a three-dimensional early warning mechanism improvement path is proposed, which includes building a dynamic information monitoring system, optimizing the risk transmission blocking mechanism, and strengthening cross-departmental collaborative governance, providing theoretical support and practical guidance for preventing systemic financial risks.

Keywords

Bank Run Crisis; Information Asymmetry; Bank Risk Warning; Herd Behavior; Systemic Risk

References

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