Journal Article
Reciprocal Deposits and the Banking Turmoil of 2023
Abstract: Reciprocal deposits are deposits exchanged between banks to effectively increase deposit insurance coverage. Their use grew significantly during the banking turmoil of 2023. This Economic Commentary describes what they are, their connection to brokered deposits, how their legal treatment has changed over time, and which banks use them the most. It also discusses longer-run trends in uninsured deposits.
Keywords: Financial crises; Bank regulation; Reciprocal deposits; Deposit insurance;
https://doi.org/10.26509/frbc-ec-202414
Access Documents
File(s):
File format is text/html
https://doi.org/10.26509/frbc-ec-202414
Description: Persistent link with full text
Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2024-08-13
Volume: 2024
Issue: 14
Pages: 12