The cost of bank funding on money markets is typically the sum of a risk-free rate and a spread that reflects rollover risk, i.e., the risk that banks cannot roll over their short-term market funding. This risk is a major concern for policymakers, who need to intervene to prevent the funding...

The cost of bank funding on money markets is typically the sum of a risk-free rate and a spread that reflects rollover risk, i.e., the risk that banks cannot roll over their short-term market funding. This risk is a major concern for policymakers, who need to intervene to prevent the funding...

The maturity mismatch between their short-term financing and long-term lending exposes banks to the risk of rolling over a maturing financial debt obligation. Such a rollover risk is sufficient on its own to cause a panic at the bank level and have a ripple effect on the banking system as a...