Source article Tier A
How Banks Use Loans to Create Liquidity
Federal Reserve Bank of Philadelphia. "How Banks Use Loans to Create Liquidity." Research in Focus, June 21, 2023. Public-facing summary of the working paper "Funding Liquidity Creation by Banks" (https://www.philadelphiafed.org/the-economy/banking-and-financial-markets/funding-liquidity-creation-by-banks).
Custody docket
- Record
- phila-fed-loans-create-liquidity-2023
- Type
- article
- Trust tier
- A
- Status
- published
Sources are graded A (primary) / B (secondary academic) / C (secondary journalism) / D (tertiary or contested). See the manifesto’s Evidence Standard for full criteria.
Federal Reserve Bank of Philadelphia research summary corroborating that bank lending creates the deposit in the same operation; reports that during 2001–2020, 92 percent of U.S. bank deposits resulted from funding liquidity created by bank lending activity rather than from cash deposits.
Provenance
- Creator
- Federal Reserve Bank of Philadelphia
- Published
- 2023
- Accessed
- 2026-05-21
Cited by
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