At US G-Sibs, 30-day funding still in vogue
Short-term funding is secured by higher-quality collateral than two years ago
Over the last two years, systemic US lenders have increasingly leaned on short-term wholesale funding (STWF) that matures within 30 days or less, Risk Quantum analysis shows.
As of Q3 2019, aggregate STWF disclosed by the eight US global systemically important banks (G-Sibs) was $5.2 trillion, up 12.6% from $4.7 trillion in Q2 2017.
Of the $587.6 billion increase over this period, 72% was in the form of 30-day funding, 12.4% for 31-90 days, 13.5% for 91-180 days and 2.1% in 181-365 day funding
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