From Organization to Activity in the US Collateralized Interbank Market

Mikhail Oet and Stephen J. Ong

No 1529, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: This paper studies and connects market organization and activity in the US collateralized interbank market using an assumption-neutral approach. We apply cluster analysis to aggregate activity factors suggested by prior studies to support two market organizations: three-tier and core-periphery. We find that four bank-specific factors and one economic conditions factor explain interbank activity for both alternative organizations. We also find evidence that the interbank market organization affects institutions? borrowing and lending. While both organizations moderate interbank activity, the three-tier structure detects distinct market operations which are not represented in the core-periphery structure.

Keywords: collateralized interbank market; market organization; tiering; interbank activity factors; cluster analysis; latent factor analysis (search for similar items in EconPapers)
JEL-codes: C30 C38 E44 G10 G21 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2015-12-14
New Economics Papers: this item is included in nep-fmk, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.26509/frbc-wp-201529 Persistent link
https://www.clevelandfed.org/-/media/project/cleve ... -to-activity-pdf.pdf Full text (application/pdf)

Related works:
Journal Article: From organization to activity in the US collateralized interbank market (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcwp:1529

Ordering information: This working paper can be ordered from

DOI: 10.26509/frbc-wp-201529

Access Statistics for this paper

More papers in Working Papers (Old Series) from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().