Discussion Paper
Banks Develop a Nonbank Footprint to Better Manage Liquidity Needs
Abstract: In a previous post, we documented how, over the past five decades, the typical U.S. bank has evolved from an entity mainly focused on deposit taking and loan making to a more diversified conglomerate also incorporating a variety of nonbank activities. In this post, we show that an important driver of the evolution of this new organizational form is the desire of banks to efficiently manage liquidity needs.
JEL Classification: G01; G21; G23; G28;
https://doi.org/10.59576/lse.20251118b
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https://libertystreeteconomics.newyorkfed.org/2025/11/banks-develop-a-nonbank-footprint-to-better-manage-liquidity-needs/
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Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2025-11-18
Number: 20251118b