US G-Sibs shun unsecured short-term funding
Trend towards borrowings secured by high-quality collateral accelerates
Over the last two years, systemic US banks have steadily increased their share of short-term borrowings secured by high-quality liquid assets (HQLA) and cut back on unsecured loans from within the financial sector.
In aggregate, the eight US global systemically important banks (G-Sibs) had total short-term wholesale funding (STWF) – all borrowings with a maturity of one year or less – of $5.2 trillion as of Q2 2019, up 11.7% from $4.7 trillion in Q2 2017.
Almost three-quarters (74.2%) of this
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