Monetary Policy, Held-to-Maturity Securities, and Uninsured Deposit Withdrawals
Bibliographic Data
| ID | 19447102 |
|---|---|
| Authors | H Neef (0000-0002-8487-3911, Australian Regenerative Medicine Institute), H Özlem Dursun-de Neef (Monash University), Steven Ongena (0000-0002-8381-0062, University of Zurich), Alexander Schandlbauer (0000-0001-6878-9042, University of Southern Denmark, corresponding author) |
| Year | 2026 |
| Volume | 35 |
| Issue | 2 |
| Pages | 503-528 |
| Publication date | 2026-03-15 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | European Accounting Review (JOURNAL) |
| Journal identifiers | ISSN: 0963-8180 • E-ISSN: 1468-4497 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09638180.2025.2478164 |
| OpenAlex | W4408537015 |
| Language | EN |
| References cited | 30 |
This paper shows that an increase in the Federal funds rate is associated with an increase in banks' unrealized losses due to their held-to-maturity (HTM) portfolio. This increase exposes banks to large uninsured deposit withdrawals as depositors seek a flight to safety. This relationship is present mainly for banks with investment portfolio losses and those with a lower capital ratio. Our results highlight the importance of banks' HTM securities when a maturity mismatch exposes them to losses and deposit withdrawals after interest rates begin to rise
Business · Economics · Financial system · Monetary economics · Monetary policy · Political science · Banking stability, regulation, efficiency · Economic Theory and Policy · Global Financial Crisis and Policies · Accounting
| Citation velocity | historical |
|---|---|
| Highly cited | No |