| Description |
1 online resource (36 pages) : color illustrations |
| Series |
IMF working paper ; WP/11/190 |
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IMF working paper ; WP/11/190.
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| Contents |
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. What Are Institutional Cash Pools?; 1. The Secular Rise of Institutional Cash Pools; III. Profiling Institutional Cash Pools; 2. The Average Size of Institutional Cash Pools in 2007; 3. Institutional Cash Pools' Priortized Investment Objectives; 4. Not Enough Banks to Source Safety for Cash Pools; 5. Not Enough Short-Term Government-Guaranteed Instruments; IV. Cash Equivalents and Monetary Aggregates; 6. Institutional Treasurers Never Put All Their Eggs in One Basket; 7. Broad Money and Its Components (Stacked) |
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8. The Preferred Habitat of Institutional Cash Pools is in Non-M2 Types of Money9. Filling the Vacuum of Short-Term Government Guaranteed Debt; V. The Triffin Dilemma of the U.S. Banking System; 10. Broad Money and Its Components (Unstacked); 11. Has the Effectiveness of Deposit Insurance Been Eroded"; VI. Policy Alternatives for Dealing With Institutional Cash Pools; VII. Conclusions; 1. Non-Financial Corporations' Holdings of Cash and Cash Equivalents, Totals; 2. High Net-Worth Individuals; 3. Long-Term Mutual Funds' Holdings of Cash and Cash Equivalents |
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4. Securities Lenders' Holdings of Cash and Cash Equivalents5. Cash and Cash Equivalents as a Share of Total Assets; 6. Non-Financial Corporations' Holdings of Cash and Cash Equivalents, Averages; 7. Top Holdings of Cash and Cash Equivalent; 8. The Number of FDIC Insured Banks in the U.S.; 9. Counterparty Diversification for Cash Investing is Getting Harder and Harder; 10. Yield Difference Between 3-month CDs and Other Instruments; 11. Securities Lenders' Cash Collateral Reinvestment Accounts' Composition; 12. The Portfolio Allocation of the Rest of the World's Short-Term Dollar Balances |
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13. The Frequency of Banking Crises14. Still Not Enough Banks to Source Safety for Cash Pools; References; Footnotes |
| Summary |
Through the profiling of institutional cash pools, this paper explains the rise of the "shadow" banking system from a demand-side perspective. Explaining the rise of shadow banking from this angle paints a very different picture than the supply-side angle that views it as a story of banks' funding preferences and arbitrage. Institutional cash pools prefer to avoid too much unsecured exposure to banks even through insured deposits. Short-term government guaranteed securities are the next best choice, but their supply is insufficient. The shadow banking system arose to fill this vacuum. One way to manage the size of the shadow banking system is by adopting the supply management of Treasury bills as a macroprudential tool |
| Notes |
At head of title: Research Department |
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Title from PDF title page (IMF Web site, viewed November 29, 2011) |
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"August 2011." |
| Bibliography |
Includes bibliographical references |
| Subject |
Banks and banking -- United States.
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Assets (Accounting) -- Management
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Money -- United States.
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Assets (Accounting) -- Management
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Banks and banking
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Money
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United States
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| Form |
Electronic book
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| Author |
International Monetary Fund. Research Department, issuing body.
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| ISBN |
1283557266 |
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9781283557269 |
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9781463900694 |
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1463900694 |
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