Discussion of Bank geographic diversification and financial stability by Sebastian Doerr
Type
presentation
Date Issued
2025-05-31
Author(s)
Abstract
Research Question: How does the geographic diversification of a bank's deposit base affect its funding stability, funding costs, and real economic outcomes? Key findings Impact of greater geographic diversification Geographic diversification reduces deposit volatility and enhances funding stability Diversification lowers funding costs by enabling a shift in liability structure Diversification boosts liquidity creation, lending, and real economic activity Economic mechanism Banks are less exposed to localized deposit withdrawals shocks Banks can reduce reliance on costlier time deposits More stable funding enables cheaper and more efficient liability structure
Event Title
FInancial Intermediation Research Society
Event Location
Seoul, Korea
Event Date
29-31 May 2025
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Name
2 2025 05 FIRS Discussion S Doerr.pdf
Size
200.33 KB
Format
Adobe PDF
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