Working paper icon

Working paper

How do banks respond to increased funding uncertainty?

Abstract:

This paper presents a simple model of risk-averse banks that face uncertainty over funding conditions in the money market. It shows when increased funding uncertainty causes interest rates on loans and deposits to rise, while bank lending and bank profitability fall. It also finds that funding uncertainty typically dampens the rate of pass-through from changes in the central bank’s policy rate to market interest rates. These results help explain observed bank behaviour and reduced effectiv...

Expand abstract

Actions


Access Document


Files:

Authors


Volume:
481
Series:
Discussion paper series
Publication date:
2010-01-01
URN:
uuid:68ab6460-deb9-455d-be4d-6a46e1113c93
Local pid:
oai:economics.ouls.ox.ac.uk:14727
Language:
English

Terms of use


Metrics


Views and Downloads






If you are the owner of this record, you can report an update to it here: Report update to this record

TO TOP