Wholesale Funding Risk
From Open Risk Manual
Definition
Wholesale Funding Risk denotes the risk associated with relying disproportionately or exclusively on Wholesale Deposits for funding.
Context
The term is used primarily in conjunction with the funding profile or regulated retail or commercial banks. Such entities typically use deposits from consumers and/or their client companies to fund credit activities (lending) but may also tap markets for additional deposits. Such funding tends to be more mobile than customer deposits a feature which, depending on the maturity profile of the funds, the risk profile of the firm or the broader market environment may lead to rapid outflows.
