Report
Deposit Specialization and Lending Behavior
Abstract: Using granular supervisory data on deposits, loans, and securities for the largest U.S. banks, we document persistent differences in depositor structures that directly shape asset structures. Retail-depositor oriented banks, for instance, enjoy cheap and stable funding. They thus hold lower-rate, longer-maturity loans and conduct more real estate lending than NBFI-depositor oriented banks. This has aggregate implications. Using exogenous deposit growth around COVID, we show bank depositor orientation shapes their response to deposit growth as well as to interest rate changes. Finally, we augment the paper with a risk measure that captures deviations between asset duration and liability maturity.
JEL Classification: G01; G20; G21;
https://doi.org/10.59576/sr.1175
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Bibliographic Information
Provider: Federal Reserve Bank of New York
Part of Series: Staff Reports
Publication Date: 2025-12-01
Number: 1175
Note: Revised July 2026.