Beau, Emily; Hill, John; Hussain, Tanveer; Nixon, Dan - In: Bank of England Quarterly Bulletin 54 (2014) 4, pp. 370-384
A bank needs to finance its activities, and the cost of bank funding affects a wide range of economic variables with important implications for both monetary and financial stability. This article sets out what bank funding costs are in simple terms, using an analogy of two buckets on a pair of...