Dollar deposit mystery highlights non-US bank funding risks

Liquidity resilience is uncertain as offshore deposit financing replaces prime money funds

mystery money
Questions raised include 'Where have the dollar deposits come from?'

Non-US banks have managed to offset a net loss of $415 billion in dollar funding resulting from US money market fund (MMF) reforms, thanks to a $531 billion growth in their offshore dollar deposit bases, research from the Bank for International Settlements (BIS) suggests. Experts warn, however, that the resilience of this changed funding structure in stressed conditions is untested.

“These structural shifts raise several questions: Where have the dollar deposits come from? Which banks have

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: