Deposit market power, funding stability and long-term credit

• 成果类型: Article
• 署名作者: Li, Lei; Loutskina, Elena; Strahan, Philip E.
• 署名单位: Federal Reserve System - USA; Federal Reserve System Board of Governors; University of Virginia; Boston College; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2023.04.004
• 发表日期: 2023
• 页码: 14-30
• 关键词: Deposits; market power; Funding stability; Loan maturity; Maturity premiums

摘要

By increasing funding stability, deposit market power reduces banks' funding risk over the cycle and provides the flexibility to originate long-term loans. Banks with deposit HHI one standard deviation above average extend loans with about 20% longer maturity than those one standard deviation below average. Deposit market power also allows banks to charge lower maturity premiums. The effects persist in the sample of zero-duration, floating rate loans. This has real effects: access to banks raising funds in less competitive markets improves growth in bank-dependent borrowers needing long-term finance. Deposit market power, by stabilizing bank funding costs, helps alleviate credit cycles.& COPY; 2023 Elsevier B.V. All rights reserved.