How do community banks access liquidity during funding stress events?

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-04-11 DOI:10.1016/j.frl.2025.107338

Patrick Herb, Raymond Kim

引用次数: 0

Abstract

We examine how community banks access liquidity during funding stress events. We find a liquidity facility utilization pecking order, in which Federal Home Loan Bank (FHLB) advances are the most utilized liquidity facility, followed by the federal funds market, followed by repurchase agreements. We also find that balance sheet liquidity affects the utilization of liquidity facilities. During funding stress events, banks that have relatively more liquid balance sheets increase their utilization of repurchase agreements and federal funds, and decrease their utilization of FHLB advances, while banks with relatively more illiquid balance sheets increase their utilization of FHLB advances, and decrease their utilization of repurchase agreements and federal funds. Our findings suggest that the FHLB is fulfilling its mission to provide liquidity to its members and support housing finance, and may be the preferred lender of last resort for community banks.

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社区银行如何在融资压力事件中获得流动性？

我们研究了社区银行如何在融资压力事件中获得流动性。我们发现了流动性工具使用的优先顺序，其中联邦住房贷款银行（FHLB）预付款是使用最多的流动性工具，其次是联邦基金市场，其次是回购协议。我们还发现，资产负债表流动性影响流动性工具的使用。在资金压力事件中，资产负债表流动性较好的银行增加了对回购协议和联邦资金的利用，减少了对FHLB垫款的利用，而资产负债表流动性较差的银行增加了对FHLB垫款的利用，减少了对回购协议和联邦资金的利用。我们的研究结果表明，FHLB正在履行其向其成员提供流动性和支持住房融资的使命，并且可能是社区银行首选的最后贷款人。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance