{
  "title": "Bank Funding Costs for International Banks",
  "publication": "IMF Working Papers, April 30, 2014",
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  "summary": "This paper investigates the determinants of bank funding costs for a sample of internationally active banks from 2001–12.",
  "sections": [
    {
      "heading": "Sample and scope",
      "content": "- Sample period: 2001–12.\n- Focus: determinants of banks’ unsecured funding costs for a sample of internationally active banks."
    },
    {
      "heading": "Determinants of funding costs",
      "content": "- Bank-specific characteristics associated with changes in unsecured funding costs:\n  - an institution’s credit worthiness.\n  - the return on its market value.\n  - the level and quality of capital.\n- Market factors associated with funding costs:\n  - the level of investor risk appetite.\n  - shocks to financial markets, notably the US subprime crisis and the Euro Area sovereign debt crisis."
    },
    {
      "heading": "Crisis effects and dynamics",
      "content": "- The US subprime crisis and the Euro Area sovereign debt crisis were key drivers of the sharp rise in bank funding costs.\n- Large systemically important institutions enjoyed a funding advantage, and this advantage increased since the onset of the two crises."
    },
    {
      "heading": "Evolution by end-2012",
      "content": "- With the exception of Euro Area periphery banks, by end-2012 the rise in funding costs had generally been reversed for most major banks.\n- Reversal drivers:\n  - improvements in bank asset quality.\n  - steps taken to increase resilience, notably higher capitalization."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Results suggest increased capital buffers may potentially support bank lending to the real economy by reducing bank funding costs."
    },
    {
      "heading": "Key publication identifiers (from source)",
      "content": "- Pages: 38\n- Volume: 2014\n- Issue: 071\n- Series: Working Paper No. 2014/071\n- DOI: https://doi.org/10.5089/9781475517910.001\n\nSource: IMF Working Paper No. 2014/071 — Bank Funding Costs for International Banks.\n\n---\n\n Content in this bundle\n\n- Wp1471\n  - Wp1471 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp1471 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/bank-funding-costs-for-international-banks-41514"
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    "Authors: Rita Babihuga, Marco Spaltro",
    "Published: April 30, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781475517910.001",
    "Sample period: 2001–12.",
    "Focus: determinants of banks’ unsecured funding costs for a sample of internationally active banks.",
    "Bank-specific characteristics associated with changes in unsecured funding costs:",
    "Market factors associated with funding costs:",
    "The US subprime crisis and the Euro Area sovereign debt crisis were key drivers of the sharp rise in bank funding costs.",
    "Large systemically important institutions enjoyed a funding advantage, and this advantage increased since the onset of the two crises.",
    "With the exception of Euro Area periphery banks, by end-2012 the rise in funding costs had generally been reversed for most major banks.",
    "Reversal drivers:",
    "Results suggest increased capital buffers may potentially support bank lending to the real economy by reducing bank funding costs.",
    "Pages: 38",
    "Volume: 2014",
    "Issue: 071",
    "Series: Working Paper No. 2014/071",
    "DOI: https://doi.org/10.5089/9781475517910.001",
    "**Wp1471**"
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