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Economic Commentary

The Evolving Loan Sales Market

Nearly everyone, from daily readers of the American Banker to devotees of It’s a Wonderful Life or Bonnie and Clyde, somehow learns a few basic facts about banking. Most people know that a bank accepts deposits and uses the money to make loans. Many people believe that if too many depositors want their money back at once, the bank will fail. What would people think if they knew banks could make loans without taking in deposits, and sell loans when depositors want their money returned?

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Haubrich, Joseph G. 1993. “The Evolving Loan Sales Market.” Federal Reserve Bank of Cleveland, Economic Commentary 7/15/1993.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International