Seminario académico de Finanzas y Contabilidad

Fecha: Jueves 10 de mayo, 13:00 horas, sala P307, Facultad de Economía y Negocios


Título: “Banks’ Money Market Funding: Resilience, Network Structure, and Central Bank’s Policies”

Expositor: Alejandro Bernales, profesor Asistente del Departamento de Ingeniería Industrial de la Facultad de Ciencias Físicas y Matemáticas de la Universidad de Chile.

Abstract

Relatively little is known about the factors that may affect the banks' relative preferences between unsecured and collateralized funding. We examine the determinants of the safe-unsafe funding decisions using a unique dataset. We decompose the relative unsecured-collateralized funding activity in migrations and co-movements, including directions of funding flows. Migrations and co-movements depend on various determinants such as systemic risk, collateral availability, central bank policies and the inter-bank network structure in each segment. Interestingly, migrations and co-movements behave differently in periods of strong financial stress, because safe assets (used in collateralized loans), are not perceived any longer as completely safe.