The Effect of Monetary Policy on Bank Wholesale Funding

Published Online:https://doi.org/10.1287/mnsc.2019.3463

References

  • Acharya V, Mora N (2015) A crisis of banks as liquidity providers. J. Finance 70(1):1–43.CrossrefGoogle Scholar
  • Adrian T, Shin HS (2008) Financial intermediaries, financial stability, and monetary policy. Staff Report 346, Federal Reserve Bank of New York, New York.Google Scholar
  • Adrian T, Shin HS (2009) Money, liquidity, and monetary policy. Amer. Econom. Rev. 99(2):600–605.Google Scholar
  • Adrian T, Shin HS (2010) Financial intermediaries and monetary economics. Friedman BM, Woodford M, eds. Handbook of Monetary Economics (Elsevier, Amsterdam), 601–650.CrossrefGoogle Scholar
  • Allen F, Gale D (2004) Asset price bubbles and monetary policy. Desai M, Said Y, eds. Global Governance and Financial Crises (Routledge, Abingdon, UK), 19–42.Google Scholar
  • Altunbas Y, Gambacorta L, Marques-Ibanez D (2009) Securitisation and the bank lending channel. Eur. Econom. Rev. 53(8):996–1009.CrossrefGoogle Scholar
  • Amel DF, Hannan TH (1999) Establishing banking market definitions through estimation of residual deposit supply equations. J. Banking Finance 23(11):1667–1690.CrossrefGoogle Scholar
  • Bank for International Settlements (2013) Basel III: The liquidity coverage ratio and liquidity risk monitoring tools. Report, Bank for International Settlements, Basel, Switzerland.Google Scholar
  • Baron M (2018) Countercyclical bank equity issuance. Working paper, Cornell University, Ithaca, NY.Google Scholar
  • Baumol WJ (1952) The transactions demand for cash: An inventory theoretic approach. Quart. J. Econom. 66(4):545–556.CrossrefGoogle Scholar
  • Becker B (2007) Geographical segmentation of US capital markets. J. Financial Econom. 85(1):151–178.CrossrefGoogle Scholar
  • Berlin M, Mester LJ (1999) Deposits and relationship lending. Rev. Financial Stud. 12(3):579–607.CrossrefGoogle Scholar
  • Bernanke BS, Blinder AS (1988) Credit, money, and aggregate demand. Amer. Econom. Rev. 78(2):435–439.Google Scholar
  • Bernanke BS, Blinder AS (1992) The federal funds rate and the channels of monetary transmission. Amer. Econom. Rev. 82(4):901–921.Google Scholar
  • Bianchi J, Bigio S (2014) Banks, liquidity management and monetary policy. Working paper, Federal Reserve Bank of Minneapolis, Minneapolis.Google Scholar
  • Blanchard O, Dell’Ariccia G, Mauro P (2010) Rethinking macroeconomic policy. J. Money Credit Banking 42(1):199–215.CrossrefGoogle Scholar
  • Borio C, Zhu H (2012) Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism? J. Financial Stability 8(4):236–251.CrossrefGoogle Scholar
  • Campello M (2002) Internal capital markets in financial conglomerates: Evidence from small bank responses to monetary policy. J. Finance 57(6):2773–2805.CrossrefGoogle Scholar
  • Choi DB, Velasquez U (2016) Hidden cost of better bank services: carefree depositors in riskier banks? Working paper, Dong Beom Choi, Seoul National University, Seoul, Korea.Google Scholar
  • Copeland A, Martin A, Walker M (2014) Repo runs: Evidence from the tri‐party repo market. J. Finance 69(6):2343–2380.CrossrefGoogle Scholar
  • Cornett MM, McNutt JJ, Strahan PE, Tehranian H (2011) Liquidity risk management and credit supply in the financial crisis. J. Financial Econom. 101(2):297–312.CrossrefGoogle Scholar
  • Dagher J, Kazimov K (2015) Banks’ liability structure and mortgage lending during the financial crisis. J. Financial Econom. 116(3):565–582.CrossrefGoogle Scholar
  • De Haas R, Van Lelyveld I (2014) Multinational banks and the global financial crisis: Weathering the perfect storm? J. Money Credit Banking 46(S1):333–364.CrossrefGoogle Scholar
  • Dell’Ariccia G, Laeven L, Marquez R (2014) Real interest rates, leverage and bank risk-taking. J. Econom. Theory 149(January):65–99.CrossrefGoogle Scholar
  • Dell’Ariccia G, Laeven L, Suarez G (2017) Bank leverage and monetary policy’s risk-taking channel: Evidence from the United States. J. Finance 72(2):613–654.CrossrefGoogle Scholar
  • De Nicolò G, Dell’Ariccia G, Laeven L, Valencia F (2010) Monetary policy and bank risk-taking. Working paper, Johns Hopkins University, Baltimore.Google Scholar
  • DeYoung R, Rice T (2004) Noninterest income and financial performance at US commercial banks. Financial Rev. 39(1):101–127.CrossrefGoogle Scholar
  • Di Maggio M, Kermani A, Keys BJ, Piskorski T, Ramcharan R, Seru A, Yao V (2017) Interest rate pass-through: Mortgage rates, household consumption, and voluntary deleveraging. Amer. Econom. Rev. 107(11):3550–3588.CrossrefGoogle Scholar
  • Diamond DW (1984) Financial intermediation and delegated monitoring. Rev. Econom. Stud. 51(3):393–414.CrossrefGoogle Scholar
  • Drechsler I, Savov A, Schnabl P (2017) The deposits channel of monetary policy. Quart. J. Econom. 132(4):1819–1876.CrossrefGoogle Scholar
  • Egan M, Hortaçsu A, Matvos G (2017) Deposit competition and financial fragility: Evidence from the US banking sector. Amer. Econom. Rev. 107(1):169–216.Google Scholar
  • Federal Financial Institutions Examination Council (2019) Commercial banks in the U.S. [USNUM]. Accessed September 11, 2019, https://fred.stlouisfed.org/series/USNUM.Google Scholar
  • Flannery MJ, James CM (1984) The effect of interest rate changes on the common stock returns of financial institutions. J. Finance 39(4):1141–1153.CrossrefGoogle Scholar
  • Freixas X, Laeven L, Peydró JL (2015) Systemic Risk, Crises and Macroprudential Policy (MIT Press, Cambridge, MA).CrossrefGoogle Scholar
  • Gatev E, Strahan PE (2006) Banks’ advantage in hedging liquidity risk: Theory and evidence from the commercial paper market. J. Finance 61(2):867–892.CrossrefGoogle Scholar
  • Gorton G, Metrick A (2012) Securitised banking and the run on repo. J. Financial Econom. 104(3):425–451.CrossrefGoogle Scholar
  • Hahm JH, Shin HS, Shin K (2013) Noncore bank liabilities and financial vulnerability. J. Money Credit Banking 45(S1):3–36.CrossrefGoogle Scholar
  • Han J, Park K, Pennacchi G (2015) Corporate taxes and securitization. J. Finance 70(3):1287–1321.CrossrefGoogle Scholar
  • Hannan TH, Berger AN (1991) The rigidity of prices: evidence from the banking industry. Amer. Econom. Rev. 81(4):938–945.Google Scholar
  • Hutchison DE, Pennacchi GG (1996) Measuring rents and interest rate risk in imperfect financial markets: The case of retail bank deposits. J. Financial Quant. Anal. 31(3):399–417.CrossrefGoogle Scholar
  • Investment Company Institute (2006) Investment company fact book. Accessed September 11, 2019, https://www.ici.org/pdf/2006_factbook.pdf.Google Scholar
  • Investment Company Institute (2010) Investment company fact book. Accessed September 11, 2019, https://www.ici.org/pdf/2010_factbook.pdf.Google Scholar
  • Investment Company Institute (2018) Investment company fact book. Accessed September 11, 2019, http://www.icifactbook.org/ch7/18_fb_ch7.Google Scholar
  • Ioannidou V, Ongena S, PeydróJL (2009) Monetary policy, risk-taking and pricing: Evidence from a quasi-natural experiment. Rev. Finance 19(1):95–144.Google Scholar
  • Irani RM, Meisenzahl RR (2017) Loan sales and bank liquidity risk management: evidence from a U.S. credit register. Rev. Financial Stud. 30(10):3455–3501.Google Scholar
  • Ivashina V, Scharfstein D (2010) Bank lending during the financial crisis of 2008. J. Financial Econom. 97(3):319–338.CrossrefGoogle Scholar
  • Jiménez G, Ongena S, Peydró JL, Saurina J (2014) Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk-taking? Econometrica 82(2):463–505.CrossrefGoogle Scholar
  • Kashyap AK, Stein JC (1995) The impact of monetary policy on bank balance sheets. Carnegie-Rochester Conf. Ser. Public Policy 42(June):151–195.CrossrefGoogle Scholar
  • Kashyap AK, Stein JC (2000) What do a million observations on banks say about the transmission of monetary policy? Amer. Econom. Rev. 90(3):407–428.CrossrefGoogle Scholar
  • Kashyap AK, Rajan R, Stein JC (2002) Banks as liquidity providers: An explanation for the coexistence of lending and deposit-taking. J. Finance 57(1):33–73.CrossrefGoogle Scholar
  • Kashyap AK, Tsomocos DP, Vardoulakis AP (2014) How does macroprudential regulation change bank credit supply? NBER Working Paper No. 20165, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Keister T, Bech ML (2012) On the liquidity coverage ratio and monetary policy implementation. BIS Quart. Rev. 2012(December):49–61.Google Scholar
  • Kiser EK (2002a) Household switching behavior at depository institutions: Evidence from survey data. Antitrust Bull. 47(4):619–640.CrossrefGoogle Scholar
  • Kiser EK (2002b) Predicting household switching behavior and switching costs at depository institutions. Rev. Indust. Organ. 20(4):349–365.CrossrefGoogle Scholar
  • Kishan RP, Opiela TP (2000) Bank size, bank capital, and the bank lending channel. J. Money Credit Banking 32(1):121–141.CrossrefGoogle Scholar
  • Krishnamurthy A, Nagel S, Orlov D (2014) Sizing up repo. J. Finance 69(6):2381–2417.CrossrefGoogle Scholar
  • Kuttner KN (2001) Monetary policy surprises and interest rates: Evidence from the Fed funds future market. J. Monetary Econom. 47(3):523–544.CrossrefGoogle Scholar
  • Landier A, Sraer D, Thesmar D (2015) The risk-shifting hypothesis: Evidence from subprime originations. Working paper, HEC Paris, Paris.Google Scholar
  • Lorenzoni G (2008) Inefficient credit booms. Rev. Econom. Stud. 75(3):809–833.CrossrefGoogle Scholar
  • Loutskina E (2011) The role of securitization in bank liquidity and funding management. J. Financial Econom. 100(3):663–684.CrossrefGoogle Scholar
  • Loutskina E, Strahan PE (2009) Securitization and the declining impact of bank finance on loan supply: Evidence from mortgage originations. J. Finance 64(2):861–889.CrossrefGoogle Scholar
  • Maddaloni A, Peydró JL (2011) Bank risk-taking, securitization, supervision, and low interest rates: Evidence from the Euro area and U.S. lending standards. Rev. Financial Stud. 24(6):2121–2165.CrossrefGoogle Scholar
  • Maddaloni A, Peydro JL (2013) Monetary policy, macroprudential policy and banking stability: evidence from the euro area. Internat J. Central Banking 9(1):121–169.Google Scholar
  • Mishkin FS (2011) Monetary policy strategy: Lessons from the crisis. Working paper, Columbia University, New York.Google Scholar
  • Myers SC, Majluf NS (1984) Corporate financing and investment decisions when firms have information that investors do not have. J. Financial Econom. 13(2):187–221.CrossrefGoogle Scholar
  • Nagel S (2016) The liquidity premium of near-money assets. Quart. J. Econom. 131(4):1927–1971.Google Scholar
  • Park K, Pennacchi G (2008) Harming depositors and helping borrowers: The disparate impact of bank consolidation. Rev. Financial Stud. 22(1):1–40.CrossrefGoogle Scholar
  • Peek J, Rosengren ES (1995) Bank lending and the transmission of monetary policy. Proc. Federal Reserve Bank Boston Conf. Ser., vol. 39 (Federal Reserve Bank of Boston, Boston), 47–68.Google Scholar
  • Pennacchi G (2006) Deposit insurance, bank regulation, and financial system risks. J. Monetary Econom. 53(1):1–30.CrossrefGoogle Scholar
  • Pennacchi GG (2019) Banks, taxes, and nonbank competition. J. Financial Services Res. 55(1):1–30.Google Scholar
  • Perignon C, Thesmar D, Vuillemey G (2018) Wholesale funding dry-ups. J. Finance 73(2):575–617.Google Scholar
  • Romer CD, Romer DH (1990) New evidence on the monetary transmission mechanism. Brookings Papers Econom. Activity 1990(1):149–198.CrossrefGoogle Scholar
  • Shin HS (2009) Reflections on Northern Rock: The bank run that heralded the global financial crisis. J. Econom. Perspect. 23(1):101–120.CrossrefGoogle Scholar
  • Stein J (2012) Monetary policy as financial-stability regulation. Quart. J. Econom. 127(1):57–95.CrossrefGoogle Scholar
  • Stein JC (1998) An adverse-selection model of bank asset and liability management with implications for the transmission of monetary policy. RAND J. Econom. 29(3):466–486.CrossrefGoogle Scholar
  • Strauss W, Howe N (1992) Generations: The History of America’s Future, 1584 to 2069 (HarperCollins, New York).Google Scholar
  • Tobin J (1956) The interest-elasticity of transactions demand for cash. Rev. Econom. Statist. 38(3):241–247.CrossrefGoogle Scholar
  • White WR (2009) Should monetary policy “lean or clean”? Working Paper 34, Federal Reserve Bank of Dallas, Dallas.Google Scholar
  • Williams E (2016) Monetary policy and funding structure of banks. Working paper, Harvard Business School, Boston.Google Scholar
  • Xiao K (2017) Shadow banks, deposit competition, and monetary policy. Working paper, Columbia University, New York.Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.