Wholesale Deposits
From Open Risk Manual
Definition
Wholesale Deposits denotes a range short term financing operations of banks from other corporates and/or banks
Issues and Challenges
In contrast with retail deposits which may benefit from a deposit guarantee and thus be less prone to rapid withdrawal, wholesale deposits are likely to be more sensitive to the credit standing of the borrowing firm (or similar firms). In case of increasing withdrawals an inability of the firm to obtain replacement funds of sufficient size and at reasonable terms, may force the liquidation of assets.
Mandatory liquidity buffers comprising of high quality assets that can be disposed easily aim to provide sufficient protection against this form of funding liquidity risk
