Arbeitspapier

Wholesale funding dry-ups

We empirically explore the fragility of wholesale funding of banks, using trans-action level data on short-term, unsecured certificates of deposits in the European market. We do not observe any market-wide freeze during the 2008-2014 period. Yet, many banks suddenly experience funding dry-ups. Dry-ups predict, but do not cause, future deterioration of bank performance. Furthermore, in periods of market stress, banks with high future performance tend to increase reliance on wholesale funding. Thus, we fail to find evidence consistent with classical adverse selection models of funding market freezes. Our evidence is in line with theories highlighting heterogeneity between informed and uninformed lenders.

ISBN
978-92-95081-93-2
Sprache
Englisch

Erschienen in
Series: ESRB Working Paper Series ; No. 49

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Thema
wholesale bank funding
market freezes
asymmetric information

Ereignis
Geistige Schöpfung
(wer)
Pérignon, Christophe
Thesmar, David
Vuillemey, Guillaume
Ereignis
Veröffentlichung
(wer)
European Systemic Risk Board (ESRB), European System of Financial Supervision
(wo)
Frankfurt a. M.
(wann)
2017

DOI
doi:10.2849/366406
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Pérignon, Christophe
  • Thesmar, David
  • Vuillemey, Guillaume
  • European Systemic Risk Board (ESRB), European System of Financial Supervision

Entstanden

  • 2017

Ähnliche Objekte (12)