Bank Funding Costs: What are They, What Determines Them and Why Do They Matter?
Year: 2014
Type: article
Abstract: A bank needs to finance its activities, and the cost of bank funding affects a wide range of economic variables with important implications for both monetary and financial stability. This article sets out what bank funding costs are in simple terms, using an analogy of two buckets on a pair of scales to help explain the dynamic nature of bank funding and bank lending. It also introduces a simple framework for analysing the main drivers of funding costs.
Authors: Emily Beau, John Hill, Tanveer Hussain, Dan Nixon
Institution: Bank of England
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2266824898