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Banking Trends: How Banks Fund Their Lending

Author

Listed:
  • James DiSalvo

Abstract

Since 2008, banks have increasingly relied on deposits for funding. But lending has changed, too.

Suggested Citation

  • James DiSalvo, 2025. "Banking Trends: How Banks Fund Their Lending," Economic Insights, Federal Reserve Bank of Philadelphia, vol. 10(4), pages 14-22, December.
    • Handle: RePEc:fip:fedpei:102215
    as

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    File URL: https://www.philadelphiafed.org/-/media/frbp/assets/economy/articles/economic-insights/2025/q4/eiq425.pdf
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    References listed on IDEAS

    as
    1. Philip Strahan, 2008. "Liquidity Production in 21st Century Banking," NBER Working Papers 13798, National Bureau of Economic Research, Inc.
    2. Shawn Kimble & Matthew P. Seay, 2024. "The interaction of bank leverage, interest-rate risk, and runnable funding," FEDS Notes 2024-08-30-2, Board of Governors of the Federal Reserve System (U.S.).
    3. W. Scott Frame & Diana Hancock & Wayne Passmore, 2012. "Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(4), pages 661-684, June.
    4. Anil K. Kashyap & Raghuram Rajan & Jeremy C. Stein, 2002. "Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit‐taking," Journal of Finance, American Finance Association, vol. 57(1), pages 33-73, February.
    5. Itamar Drechsler & Alexi Savov & Philipp Schnabl, 2017. "The Deposits Channel of Monetary Policy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(4), pages 1819-1876.
    6. Berlin, Mitchell & Mester, Loretta J, 1999. "Deposits and Relationship Lending," The Review of Financial Studies, Society for Financial Studies, vol. 12(3), pages 579-607.
    Full references (including those not matched with items on IDEAS)

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