Banks fearing the drought?: liquidity hoarding as a response to idiosyncratic interbank funding dry-ups

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Bibliographic Details
Authors and Corporations:	Littke, Helge (Author), Ossandon Busch, Matias (Author)
Other Authors:	Ossandon Busch, Matias 1985- [Author]
Type of Resource:	E-Book
Language:	English
published:	Frankfurt am Main Deutsche Bundesbank [2021]
Series:	Deutsche Bundesbank: Discussion paper ; no 2021, 16
Subjects:	Interbank funding Internal capital markets Financial market structure Liquidity risk Central bank interventions Graue Literatur
Source:	Verbunddaten SWB Lizenzfreie Online-Ressourcen
ISBN:	9783957298249

Description
Summary:	We investigate whether idiosyncratic interbank funding shocks affecting a bank headquarters can trigger a liquidity hoarding reaction by their regional branches. Shock-affected branches of Brazilian banks increase liquid assets and cut lending in the shocks' aftermath compared to non-affected branches within the same municipality, even in absence of a market-wide freeze. These effects increase in branches' reliance on internal funding and vary depending on banks' access to central bank emergency liquidity. Our findings suggest that the geographical fragmentation of branches' funding limits their ability to offset idiosyncratic funding shocks.
Physical Description:	1 Online-Ressource (circa 41 Seiten); Illustrationen
ISBN:	9783957298249