EconPapers    
Economics at your fingertips  
 

Trading partners in the interbank lending market

Gara Afonso (), Anna Kovner and Antoinette Schoar ()

No 620, Staff Reports from Federal Reserve Bank of New York

Abstract: There is substantial heterogeneity in the structure of trading relationships in the U.S. overnight interbank lending market: Some banks rely on spot transactions, while a majority form stable, concentrated borrowing relationships to hedge liquidity needs. Borrowers pay lower prices and borrow more from their concentrated lenders. When there are exogenous shocks to liquidity supply (days with low GSE lending), concentrated lenders insulate borrowers from the shocks without charging significantly higher interest rates.

Keywords: interbank lending; OTC markets (search for similar items in EconPapers)
JEL-codes: D40 E59 G10 G21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban and nep-mon
Date: 2013, Revised 2014-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr620.html (text/html)
https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr620.pdf Full text (application/pdf)

Related works:
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:fednsr:620

Ordering information: This working paper can be ordered from
http://www.ny.frb.org/rmaghome/staff_rp/

Access Statistics for this paper

More papers in Staff Reports from Federal Reserve Bank of New York Contact information at EDIRC.
Series data maintained by Amy Farber ().

 
Page updated 2017-10-18
Handle: RePEc:fip:fednsr:620