IDEAS home Printed from https://ideas.repec.org/p/fip/fednls/89064.html
   My bibliography  Save this paper

How Bank Reserves Are Distributed Matters. How You Measure Their Distribution Matters Too

Author

Listed:
  • Gara Afonso
  • Marco Cipriani
  • Steph Clampitt
  • Haitham Jendoubi
  • Gabriele La Spada
  • Will Riordan

Abstract

Changes in the distribution of banks’ reserve balances are important since they may impact conditions in the federal funds market and alter trading dynamics in money markets more generally. In this post, we propose using the Lorenz curve and Gini coefficient as a new approach to measuring reserve concentration. Since 2013, concentration, as captured by the Lorenz curve and the Gini coefficient, has co-moved with aggregate reserves, decreasing as aggregate reserves declined (such as in 2015-18) and increasing as aggregate reserves increased (such as at the onset of the COVID-19 pandemic).

Suggested Citation

  • Gara Afonso & Marco Cipriani & Steph Clampitt & Haitham Jendoubi & Gabriele La Spada & Will Riordan, 2020. "How Bank Reserves Are Distributed Matters. How You Measure Their Distribution Matters Too," Liberty Street Economics 20201124, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednls:89064
    as

    Download full text from publisher

    File URL: https://libertystreeteconomics.newyorkfed.org/2020/11/how-bank-reserves-are-distributed-matters-how-you-measure-their-distribution-matters-too.html
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    reserves; concentration; COVID-19;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fednls:89064. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/frbnyus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.