Reciprocal Deposits and the Banking Turmoil of 2023
Reciprocal deposits are deposits exchanged between banks to effectively increase deposit insurance coverage. Their use grew significantly during the banking turmoil of 2023. This Economic Commentary describes what they are, their connection to brokered deposits, how their legal treatment has changed over time, and which banks use them the most. It also discusses longer-run trends in uninsured deposits.
Authors
- Edward Simpson Prescott (ORCID: https://orcid.org/0000-0002-6433-1680)
- Grant E. Rosenberger (ORCID: https://orcid.org/0000-0002-6487-2284)
Institutions
- Federal Reserve Bank of Cleveland (US)
Publication Details
- Journal
- Economic Commentary (Federal Reserve Bank of Cleveland)
- Published
- 2024-08-12
- DOI
- https://doi.org/10.26509/frbc-ec-202414
- Citations
- 2
- Primary Topic
- Banking stability, regulation, efficiency
- Type
- article
- Field-Weighted Citation Impact
- 1.08