2024-11-10-国际清算银行-银行地域多元化和资金稳定性（英）_75页_654kb

Summary: Bank Geographic Diversification and Funding Stability

This paper argues that geographic diversification of a bank's deposit base enhances funding stability and stimulates economic activity. Key findings include:

• Greater diversification increases dispersion in branch deposit growth rates but reduces volatility over time, improving resilience to withdrawal shocks.
• Diversification lowers funding costs by shifting liability structures toward cheaper demand deposits from more expensive time deposits.
• It boosts liquidity creation and small business lending, with positive real effects on firm growth in bank-dependent sectors. The effects are robust to alternative explanations, such as asset-side diversification or deposit market power.
• The findings highlight a novel funding stability channel and suggest that ongoing branch network declines could harm bank stability and small businesses, though geographic expansion may mitigate these effects.

Overall, the paper emphasizes diversification's role in improving bank resilience and supporting lending, with implications for financial stability and regulatory policy.