What are bank funding costs? - Quarterly Bulletin article

28 Nov 2014   04:55   0
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Using an analogy of two buckets balanced on a set of scales, this video explores the dynamic nature of bank funding and bank lending. It focusses on bank funding costs, which are integral to a wide range of economic variables with important implications for both monetary and financial stability.

The buckets analogy is used to illustrate the potential impact of a rise funding costs for a bank’s profitability and broader economic conditions.

A Quarterly Bulletin article explores these issues in more detail. It also sets out a framework for understanding some of the main drivers of bank funding costs:

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q4prereleasebankfundingcosts.pdf

Filmed by James Oxley


Tags: Bank Of England (Organization), quarterly bulletin, Bank (Industry), funding, cost, assets, loans, United Kingdom (Country), household debt, wholesale, liquid, capital

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