Marc-Andre Pigeon (University of Saskatchewan) , Yang Yang (University of Saskatchewan)
Financial sector policymakers in Canada and elsewhere are increasingly investing in communication strategies to support their policy objectives, a recognition that effective communications can serve as a policy instrument. Using a survey experiment methodology, we explore the impact of five communication strategies, each modelled after a real-world example, that have been used to stop the panicked outflow of deposits arising from a crisis of confidence in banking. We further explore the differential effects of these communications strategies on U.S. and Canadian banking customers and contrast the impact of these messaging strategies on bank customers versus members of financial co-operatives (i.e., credit unions). The results of the experiment provide important evidence for policymakers in determining optimal communication strategies in times of crisis.