Discussion Paper

Assessing Bank Resilience to a Funding Shock


Abstract: Deposits are the largest source of funding for U.S. banks, representing approximately two-thirds of liabilities. Deposits also remain key to bank profitability, as they typically function as a stable source of long-term funding at a cost well-below interest earned on bank assets.

https://doi.org/10.17016/2380-7172.3987

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-02-17

Number: 2026-02-17