Buba paper: Banks with volatile loan demand load up on wholesale funds
Since the volume of retail deposits is slow and expensive to adjust to shocks in the volume of bank assets, banks facing more intense uncertainty and more volatile loan demand tend to rely more on wholesale liabilities, according to a new Bundesbank discussion paper.
Uncertainty and bank wholesale funding, by Valeriya Dinger and Ben Craig, uses a "unique" dataset constructed from weekly reports by the 122 largest US commercial banks to demostrate an economically and statistically significant
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