Discussion Paper

Monitoring Reserve Scarcity Through Nonbank Cash Lenders


Abstract: In this note, we show that nonbank lenders' behavior as cash lenders can help discern early informative signals about the scarcity of reserves. Reserves, which are deposits that banks and other financial institutions hold at the Federal Reserve, are the most liquid asset on banks' balance sheets and hence play a central role in banks' liquidity management.

https://doi.org/10.17016/2380-7172.3699

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Bibliographic Information

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

Part of Series: FEDS Notes

Publication Date: 2025-03-28

Number: 2025-03-28-4