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Cited by 394

The DOI matches its Crossref record; 41 of the 41 references it cites were found in a registry or an index.

Banking on Deposits: Maturity Transformation without Interest Rate Risk

Open access
DRECHSLER, ITAMAR, SAVOV, ALEXI, SCHNABL, PHILIPP·2021·The Journal of Finance
DOI 10.1111/jofi.13013
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Abstract

We show that maturity transformation does not expose banks to interest rate risk—it hedges it. The reason is the deposit franchise, which allows banks to pay deposit rates that are low and insensitive to market interest rates. Hedging the deposit franchise requires banks to earn income that is also insensitive, that is, to lend long term at fixed rates. As predicted by this theory, we show that banks closely match the interest rate sensitivities of their interest income and expense, and that this insulates their equity from interest rate shocks. Our results explain why banks supply long‐term credit.

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Registry

Crossref · 10.1111/jofi.13013

Cites

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Citations

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Metadata

Authors
DRECHSLER, I., SAVOV, A., & SCHNABL, P.
Venue
The Journal of Finance
Publisher
Wiley
Published
2021-04-06
Volume
76
Issue
3
Pages
1091-1143
ISSN
  • 0022-1082 (ISSN-L)
  • 1540-6261
DOI
10.1111/jofi.13013
OpenAlex
W3125262113
Cited by
394
References
41
FWCI
46.06
Type
journal article
Language
en
Open access
bronze

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CoChat. (2026). Citation check: Banking on Deposits: Maturity Transformation without Interest Rate Risk. https://app.cochat.ai/papers/10.1111/jofi.13013
The paper
DRECHSLER, I., SAVOV, A., & SCHNABL, P. (2021). Banking on Deposits: Maturity Transformation without Interest Rate Risk. The Journal of Finance. https://doi.org/10.1111/jofi.13013

Data sources

Bibliographic data: Semantic Scholar, OpenAlex, Crossref.

Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.