Abstract
This study examines how the COVID-19 pandemic influences bank funding costs using a sample of around 5300 US listed banks from 2018:Q3 to 2021:Q2. We consistently find that the COVID-19 pandemic significantly reduces bank funding costs. Digging deeper into bank funding structure, our findings show that the decline in bank funding costs is mainly driven by the increase in the supply of retail deposits rather than wholesale deposits. We also find that large banks with higher asset quality benefit more from the pandemic than small and medium-size banks in terms of cheaper funding costs during the pandemic.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
