Regulatory Restrictions on US Bank Funding Sources : A Review of the Treatment of Brokered Deposits

Banks have long relied on a number of funding sources, including equity capital, non-brokered and brokered deposits, and other liabilities, to make various types of loans and investments. And for almost as long, bank regulatory authorities have imposed various restrictions and costs on those funding sources that are perceived to be excessively risky. Brokered deposits have been incorrectly identified as a cause of bank failure when in fact they have proven to be a safe and valuable source of funding for banks