Banks increasingly reliant on ‘flighty’ finance, BIS finds
Money market funds are taking on an even greater role as funding sources, research says
Banks have become even more reliant on non-banks as a source of funding, potentially amplifying financial stability risks, new analysis finds.
Several articles in the Bank for International Settlements quarterly review, published today (September 18), examine dangers posed by this development.
In one paper, Bryan Hardy and Sonya Zhu track how funding sources shifted in response to the banking sector stress in the first quarter of 2023. They find dollar funding – through deposits, repos and
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