Banks’ internal markets impact wider funding conditions – paper
Repos from affiliates play key role in channelling liquidity to financial system, authors find
Banks’ internal liquidity markets affect funding conditions in the wider financial system, a new study of lenders’ internal pricing structures finds.
Research published this week by the US National Bureau of Economic Research draws on confidential supervisory data on the country’s triparty repurchase market to explore how entities within bank holding companies lend to one another.
The authors – Jennie Bai, Erik Bostrom, Sebastian Infante and Victoria Ivashina – find that affiliated entities
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