讲座：Reciprocal Lending Relationships in Shadow Banking
题 目：Reciprocal Lending Relationships in Shadow Banking
演讲人：李 怡 高级经济师 美国联邦储备委员会总部(Federal Reserve Board)
主持人：戴 亮 助理教授 上海交通大学安泰经济与管理学院金融系
地 点：上海交通大学 徐汇校区新上院S203
As key lenders in the shadow banking sector, prime money market funds (MMFs) provide funding for banks through various instruments, with maturities up to one year. Post-crisis regulations apply stricter liquidity rules to both MMFs and banks, likely generating contradictory effects, as MMFs are encouraged to do more overnight lending and banks to borrow longer-term. Using a novel dataset, I find that MMFs and banks seem to resolve this dilemma by developing a “bundling” strategy across multiple funding markets. In particular, MMFs substantially increase their investments in long-term debt issued by banks that have recently accommodated MMFs’ overnight investment needs, and charge significantly lower rates on those long-term debt issued by accommodative banks. Such cross-market reciprocal relationships are robust after controlling for bank credit risks and traditional relationship measures, and are stronger between MMFs and foreign banks, who depend on MMFs for dollar funding more than U.S. banks do.
Yi Li is a senior economist at the Board of Governors of the Federal Reserve System in Washington DC, where she conducts policy analyses and research in the fields of short-term funding markets, shadow banking activities, and behaviors of financial institutions. Her paper on herding behaviors of corporate bond investors has been accepted at Journal of Financial Economics and received extensive media coverage. Yi earned her Ph.D. in economics from Princeton University in 2014. Prior to her graduate studies, Yi received her bachelor degrees from Peking University.