Wholesale Bank Funding, Capital Requirements and 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 a...

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Detalhes bibliográficos
Autor principal: Agur, Itai
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2013.
Colecção:IMF Working Papers; Working Paper ; No. 2013/030
Acesso em linha:Full text available on IMF
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520 3 |a 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. 
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