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Banking & Payments

Wholesale Funding

Also called: market funding, brokered deposits, interbank funding

Wholesale funding is money a bank borrows from markets and other institutions rather than from retail depositors. It's flexible and scalable, and it is also the flightiest liability on any balance sheet: professional lenders withdraw at the first sign of trouble, while retail depositors mostly don't. Every modern liquidity rule is built around penalising reliance on it.

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