Wholesale Bank Funding, Capital Requirements and Credit Rationing / Itai Agur.

Format:

Book

Government document

Author/Creator:

Agur, Itai.

Contributor:

International Monetary Fund.

Series:

IMF Working Papers; Working Paper ; No. 2013/030

IMF Working Papers

Language:

English

Subjects (All):

Bank assets--Econometric models.

Bank assets.

Bank liabilities--Econometric models.

Bank liabilities.

Bank profits--Econometric models.

Bank profits.

Security (Law).

Physical Description:

1 online resource (23 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2013.

Language Note:

English

Summary:

This paper analyzes how different types of bank funding affect the extent to which banks ration credit to borrowers, and the impact that capital requirements have on that rationing. Using an extension of the standard Stiglitz-Weiss model of credit rationing, unsecured wholesale finance is shown to amplify the credit market impact of capital requirements as compared to funding by retail depositors. Unsecured finance surged in the pre-crisis years, but is increasingly replaced by secured funding. The collateralization of wholesale funding is found to expand the extent of credit rationing.

Contents:

Cover; Contents; I. Introduction; II. Model; A. Bank assets; B. Bank liabilities; C. Bank profits; D. Comparative statics to credit rationing; III. Retail funding; Figures; Figure 1. Capital requirements' impact if retail funded; IV. Unsecured wholesale funding; Figure 2. Capital requirements with unsecured funding; V. Secured wholesale funding; Figure 3. Impact of collateralizing bank funding; VI. Mixed funding; VII. Conclusions; Figure 4. Mixed funding; Appendix: Proofs; References

Notes:

"IMF - Singapore Regional Training Institute"--p. 2 of pdf.

"January 2013"--p. 2 of pdf.

Includes bibliographical references (p. 20-21).

Description based on print version record.

ISBN:

9781475538656

1475538650

9781475594829

1475594828

9781299265127

129926512X

9781475569858

1475569858