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Deposit Specialization and Lending Behavior

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Abstract

Using granular supervisory data on deposits, loans, and securities for the largest U.S. banks, we document persistent differences in depositor structures that directly shape asset structures. Retail-depositor oriented banks, for instance, enjoy cheap and stable funding. They thus hold lower-rate, longer-maturity loans and conduct more real estate lending than NBFI-depositor oriented banks. This has aggregate implications. Using exogenous deposit growth around COVID, we show bank depositor orientation shapes their response to deposit growth as well as to interest rate changes. Finally, we augment the paper with a risk measure that captures deviations between asset duration and liability maturity.

Suggested Citation

  • Kristian S. Blickle & Cecilia Parlatore & Anthony Saunders, 2025. "Deposit Specialization and Lending Behavior," Staff Reports 1175, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:102272
    DOI: 10.59576/sr.1175
    Note: Revised July 2026.
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    References listed on IDEAS

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    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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