The Effect of Monetary Policy on Bank Wholesale Funding

• 成果类型: Article
• 署名作者: Choi, Dong Beom; Choi, Hyun-Soo
• 署名单位: Seoul National University (SNU); Korea Advanced Institute of Science & Technology (KAIST)
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2019.3463
• 发表日期: 2021
• 页码: 388-416
• 关键词: Monetary transmission; bank liability; deposit; Financial stability; Bank lending channel; wholesale funding substitutions; cross-sectional heterogeniety; Liquidity regulation

摘要

We study how monetary policy affects the funding composition of the banking sector. When monetary tightening reduces the supply of retail deposits, banks attempt to substitute wholesale funding for deposit outflows to smooth their lending. Because of financial frictions, banks have varying degrees of access to wholesale funding. Therefore, large banks, or those with greater reliance on wholesale funding, increase their wholesale funding more. Consequently, monetary tightening increases both the reliance on and the concentration of wholesale funding within the banking sector. Our findings also suggest that liquidity requirements could bolster monetary policy transmission through the bank lending channel.