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Banks’ Internal Capital Markets and Deposit Rates

Ben-David, Itzhak - 2015

A common view is that deposit rates are determined primarily by supply: depositors require higher deposit rates from risky banks, thereby creating market discipline. An alternative perspective is that market discipline is limited (e.g., due to deposit insurance and/or enhanced capital...

Persistent link: https://www.econbiz.de/10011955520

Banking on Deposits : Maturity Transformation without Interest Rate Risk

Drechsler, Itamar - 2018

We show that maturity transformation does not expose banks to significant interest rate risk--it actually hedges banks' interest rate risk. We argue that this is driven by banks' deposit franchise. Banks incur large operating costs to maintain their deposit franchise, and in return get...

Persistent link: https://www.econbiz.de/10012453135

Self Control and Commitment : Can Decreasing the Liquidity of a Savings Account Increase Deposits?

Beshears, John - 2015

If individuals have self-control problems, they may take up commitment contracts that restrict their spending. We experimentally investigate how contract design affects the demand for commitment contracts. Each participant divides money between a liquid account, which permits unrestricted...

Persistent link: https://www.econbiz.de/10012457194

Is Maturity-Transformation Risk Priced into Bank Deposit Rates?

Fleckenstein, Matthias; Longstaff, Francis A. - National Bureau of Economic Research - 2024

We use the term structure of bank CD rates to examine whether maturity-transformation risk is priced into the rates banks offer customers. We find that depositors pay a significant cost for the liquidity provided by bank deposits. This cost is strongly related to the amount of...

Persistent link: https://www.econbiz.de/10014635687

Real interest rates, credit markets, and economic stabilization

Jenkins, Paul; Walsh, Carl E. - 1985

Persistent link: https://www.econbiz.de/10003585366

Can Emerging Market Bank Regulators Establish Credible Discipline? The Case of Argentina, 1992-1999

Calomiris, Charles W. - 2000

substantial heterogeneity among banks in the interest rates they pay for debt and the rate of growth of their deposits, and that …

Persistent link: https://www.econbiz.de/10012471046

The Demand for Money, Near-Money, and Treasury Bonds

Krishnamurthy, Arvind; Li, Wenhao - National Bureau of Economic Research - 2022

Bank-created money, shadow-bank money, and Treasury bonds all satisfy investors' demand for a liquid transaction medium and safe store of value. We measure the quantity of these three forms of liquidity and their corresponding liquidity premium over a sample from 1934 to 2016. We empirically...

Persistent link: https://www.econbiz.de/10013210079

Real Interest Rate, Credit Markets, and Economic Stabilization

Jenkins, Paul - 1985

The role of a real interest rate and a credit aggregate as intermediate monetary policy targets are investigated under the assumption of rational expectations. The analysis expands a standard aggregate model to include a credit market and a market determined interest rate on bank deposits. This...

Persistent link: https://www.econbiz.de/10012477509

Deposit Market Power, Funding Stability and Long-Term Credit

Li, Lei - 2019

This paper shows that banks raising deposits in more concentrated markets have more funding stability, which enhances banks' ability to extend longer-maturity loans. We show that banks raising deposits in concentrated markets exhibit less pro-cyclical financing costs and profits, which in turn...

Persistent link: https://www.econbiz.de/10012480109

Banking without Deposits : Evidence from Shadow Bank Call Reports

Jiang, Erica - 2020

first time, call report data for shadow banks which originate one quarter of all US household debt. We document five facts … banks finance themselves primarily with short-term debt and originate long-term loans. However, shadow bank debt is provided … capitalization of the largest shadow banks is similar to banks of comparable size. (5) Uninsured leverage, defined as uninsured debt …

Persistent link: https://www.econbiz.de/10012482083

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