Bank Funding Dynamics Between Retail Deposits and Wholesale Funds: Implications for Regulations

IF 1.5 4区 经济学 Q3 BUSINESS, FINANCE
Yi Zheng, S. Drew Peabody
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Abstract

This paper identifies a contemporaneous substitutional relationship between retail deposits and wholesale funds, while the lagged relationship between the two is rather weak-a finding consistent with our “stable capitalization hypothesis.” We find that this substitution effect is much more pronounced for banks facing retail deposit inflows compared to those facing outflows, suggesting that influxes of deposits allow banks to cut wholesale funding more aggressively to maintain their capital structures. This substitution effect is also negatively associated with wholesale funding maturity and riskiness. Furthermore, we show that the substitutional relationship is weaker during funding shocks such as the 2007-2009 financial crisis and that the substitution itself does not help banks maintain their lending, which supports the argument for a lender of last resort. Finally, we demonstrate that liquidity regulation curbs this substitution, which overall helps banks improve financial stability.

Abstract Image

零售存款与批发资金之间的银行资金动态:对监管的影响
本文发现了零售存款与批发资金之间的同期替代关系,而两者之间的滞后关系相当弱--这一发现与我们的 "稳定资本化假说 "一致。我们发现,与面临存款外流的银行相比,面临零售存款流入的银行的这种替代效应要明显得多,这表明存款流入允许银行更积极地削减批发资金,以维持其资本结构。这种替代效应还与批发资金的期限和风险度呈负相关。此外,我们还表明,在 2007-2009 年金融危机等资金冲击期间,这种替代关系会减弱,而且替代本身并不能帮助银行维持贷款,这支持了最后贷款人的论点。最后,我们证明流动性监管抑制了这种替代,总体上有助于银行提高金融稳定性。
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来源期刊
CiteScore
3.00
自引率
7.10%
发文量
22
期刊介绍: The Journal of Financial Services Research publishes high quality empirical and theoretical research on the demand, supply, regulation, and pricing of financial services. Financial services are broadly defined to include banking, risk management, capital markets, mutual funds, insurance, venture capital, consumer and corporate finance, and the technologies used to produce, distribute, and regulate these services. Macro-financial policy issues, including comparative financial systems, the globalization of financial services, and the impact of these phenomena on economic growth and financial stability, are also within the JFSR’s scope of interest. The Journal seeks to promote research that enriches the profession’s understanding of financial services industries, to elevate industry and product efficiencies, as well as to inform the debate and promote the formulation of sound public policies.   Officially cited as: J Financ Serv Res
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