The passthrough of treasury supply to bank deposit funding

• 成果类型: Article
• 署名作者: Li, Wenhao; Ma, Yiming; Zhao, Yang
• 署名单位: University of Southern California; Columbia University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2026.104334
• 发表日期: 2026-10
• 页码: 104334
• 关键词: Treasuries; Bank deposits; Safe assets; financial intermediation; monetary policy; demand; money; term

摘要

We demonstrate the passthrough of Treasury supply to bank deposits through bank market power. We show that a larger Treasury supply crowds out deposits with disproportionate effects in more competitive deposit markets. A larger Treasury supply further curtails bank lending and affects bank funding structure. The explanatory power of Treasury supply is not driven by other shocks to deposit demand and supply. In comparison, monetary policy rate hikes have a larger impact on deposit funding in more concentrated markets, consistent with the deposits channel of monetary policy. Our empirical findings are rationalized in a model of imperfect deposit competition.