Skip to:
  1. Main navigation
  2. Main content
  3. Footer
Working Paper

Deposit Market Competition, Costs of Funding and Bank Risk

In this article we provide a summary of empirical results obtained in several economics and operations research papers that attempt to explain, predict, or suggest remedies for financial crises or banking defaults; we also outline the methodologies used in them. We analyze financial and economic circumstances associated with the U.S. subprime mortgage crisis and the global financial turmoil that has led to severe crises in many countries. The intent of this article is to promote future empirical research for preventing bank failures and financial crises.
06.01.2009ISSN 2573-7953 WP 09-05Revisions WP 09-05RDOI 10.26509/frbc-wp-200905
Keywords bank competition, wholesale funding, bank risk, deposit rates
JEL Classification Codes G21

Working Papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views expressed in this paper are those of the authors and do not represent the views of the Federal Reserve Bank of Cleveland or the Federal Reserve System.

Suggested Citation

Craig, Ben R., and Valeriya Dinger. 2009. “Deposit Market Competition, Costs of Funding and Bank Risk.” Federal Reserve Bank of Cleveland, Working Paper No. 09-05. https://doi.org/10.26509/frbc-wp-200905