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Short Circuiting Short-Term Funding

Author

Listed:
  • R. Jay Kahn
  • Neth Karunamuni
  • Mark Paddrik

Abstract

Cybersecurity-related outages can affect lenders by creating liquidity gaps, raising interest rates, and spreading shocks in the repo market (Working Paper no. 26-02).

Suggested Citation

  • R. Jay Kahn & Neth Karunamuni & Mark Paddrik, 2026. "Short Circuiting Short-Term Funding," Working Papers 26-02, Office of Financial Research, US Department of the Treasury.
    • Handle: RePEc:ofr:wpaper:26-02
    as

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    File URL: https://www.financialresearch.gov/working-papers/files/OFRwp26-02_short-circuiting-short-term-funding.pdf
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    References listed on IDEAS

    as
    1. Selman Erol & Michael Junho Lee, 2024. "Financial System Architecture and Technological Vulnerability," Staff Reports 1122, Federal Reserve Bank of New York.
    2. Adam Copeland & Darrell Duffie & Yilin (David) Yang, 2025. "Reserves Were Not So Ample After All," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 140(1), pages 239-281.
    3. López-Espinosa, Germán & Moreno, Antonio & Rubia, Antonio & Valderrama, Laura, 2012. "Short-term wholesale funding and systemic risk: A global CoVaR approach," Journal of Banking & Finance, Elsevier, vol. 36(12), pages 3150-3162.
    4. Eisenbach, Thomas M. & Kovner, Anna & Lee, Michael Junho, 2022. "Cyber risk and the U.S. financial system: A pre-mortem analysis," Journal of Financial Economics, Elsevier, vol. 145(3), pages 802-826.
    5. Adam Copeland & Antoine Martin, 2025. "Repo over the Financial Crisis," Journal of Finance, American Finance Association, vol. 80(2), pages 911-936, April.
    6. Antonis Kotidis & Stacey L. Schreft, 2025. "The Propagation of Cyberattacks through the Financial System: Evidence from an Actual Event," Journal of Finance, American Finance Association, vol. 80(6), pages 3313-3358, December.
    7. Adam Copeland & Antoine Martin & Michael Walker, 2014. "Repo Runs: Evidence from the Tri-Party Repo Market," Journal of Finance, American Finance Association, vol. 69(6), pages 2343-2380, December.
    8. Gorton, Gary & Metrick, Andrew, 2012. "Securitized banking and the run on repo," Journal of Financial Economics, Elsevier, vol. 104(3), pages 425-451.
    Full references (including those not matched with items on IDEAS)

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