Large UK banks have curbed their reliance on short-term wholesale funding (STWF), data from the Bank of England shows.
The share of STWF, excluding repo, as a proportion of total funding stood at 4% in 2018, down from 15% in 2005, according to the BoE’s Financial Stability Report published today (July 11). The share of long-term wholesale funding has also tumbled over the same period, to 19% from 26%.
Banks’ thirst for STWF peaked in 2006, when it made up 16% of total funding. Reliance on