Wholesale Deposit

Wholesale Deposit

A deposit at a bank made by an institutional investor, a large business, another bank or an investment vehicle such as a mutual fund or pension. Wholesale deposits are usually large amounts of money, and wholesale clients are sometimes prioritized more highly than individual customers.
References in periodicals archive ?
With the easing of systemic liquidity, we have already seen some correction in wholesale deposit rates.
Previously, the guarantee covered just Northern Rock's retail and wholesale deposit accounts as well as the bank's unsecured wholesale borrowing.
Total loans declined by $21 million in the fourth quarter of 2017 due to accelerated payments and prepayments of investment-grade leases, and total deposits declined by $31 million during the fourth quarter of 2017 due to a reduction of wholesale deposits.
At the aggregate level, central bank statistics for the first two months of this year show banking sector liquidity in the country is improving, through largely driven by improvements in wholesale deposits by governments and government related entities (GREs).
This is in part due to regulatory constraints in its home market, Bahrain, where ABC is restricted to mobilising only wholesale deposits.
The rating agency's standard assumptions, which are applied to Unipol Banca, assume residual tangible common equity of 3% and losses post-failure of 8% of tangible banking assets, a 25% run-off in junior wholesale deposits, a 5% run-off in preferred deposits, and a 25% probability of deposits being preferred to senior unsecured debt.
The report evaluates how G-SIBS may meet the minimum proposed requirements including the possibility of using long- term wholesale deposits as TLAC and the impact on debt issuance.
Given the nature of Abil's wholesale deposits, which are largely from institutional investors, we believe that the regulators are treating these investors as more akin to senior debtors than would have been the case for retail depositors," it said.
Saying that the banks would benefit from the downtrend in short-term rates that started a month ago, analyst Jaideep Iyer, who is also a senior president at Yes Bank, said that these lenders have a higher exposure to wholesale deposits, which will result in an improvement in their net interest margin (NIM) over the next few quarters.
Among banks dependent on wholesale deposits, Yes Bank Ltd jumped 22.
The rating agency said the outlook reflects the sluggish operating environment which will weaken asset quality and increase provisioning needs; the banks' sizable holdings of sovereign securities, linking bank credit profiles to that of the government of South Africa (B1 negative); and, funding challenges due to reliance on short-term wholesale deposits.
If you have a very strong balance sheet, investors will have confidence in placing money whether as wholesale deposits or investing in instruments issued by the bank or even taking up shares in the bank, and with those resources we would then be able to invest in projects in the country.
Full browser ?