Internet search volumes of UK banks during the crisis: The role of banking structure and business model

This paper investigates the sensitivity of Google search volumes to the global financial crisis, using a large sample of UK banks. We find that abnormal volumes of searches on bank names are a timely indicator of credit risk, as measured by credit default swap rates, and are strongly related to crisis indicators. Search volumes for retail, private, and universal banks react more strongly than search volumes for other banks, suggesting that depositor concerns drive search volumes. Search volumes for internet banks and for European banks operating in the UK through branches are especially sensitive to crises.