Wholesale Bank Funding, Capital Requirements and Credit Rationing [electronic resource] / Itai Agur.
Material type:
TextSeries: IMF Working Papers; Working Paper ; No. 13/30Publication details: Washington, D.C. : International Monetary Fund, 2013Description: 1 online resource (22 p.)ISBN: 1475571623 :ISSN: 1018-5941Subject(s): Bank Funding | Bank Risk | Collateral | Collateralization | Deposit Insurance | Government Policy and Regulation | Jersey | Singapore | United StatesAdditional physical formats: Print Version:: Wholesale Bank Funding, Capital Requirements and Credit RationingOnline resources: IMF e-Library | IMF Book Store Abstract: 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.
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.
Description based on print version record.
There are no comments on this title.