Wholesale Funding Dependence
Wholesale Funding Dependence — Reliance on market funding versus sticky deposits.
Definition
Wholesale Funding Dependence refers to reliance on market funding versus sticky deposits. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Bank funding and deposit behavior transmit stress into credit supply and asset prices. When reliance on market funding versus sticky deposits shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what wholesale funding dependence is saying. If reliance on market funding versus sticky deposits moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Pair with deposit betas, wholesale funding, and regulatory ratios before calling a scare over. Prefer a short written null hypothesis for Wholesale Funding Dependence: what would falsify the current reading in the next window?