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Repurchase agreements exchange cash for securities with a promised reversal. Collateral reduces exposure, but haircuts, margin calls and refinancing needs can turn modest market moves into immediate cash demands.

Version note: Adds OFR’s August 2025 daily-collection evidence on zero haircuts, affiliated counterparties and the limits of comparison with the 2022 pilot. Existing historical findings and examples are retained.

An internal funding price helps compare lending, deposit gathering and transaction businesses. The result depends on cash-flow timing, behavioral assumptions and how liquidity costs and benefits are assigned.

Version note: Corrected the cited guidance attachment’s date to March 1, 2016 and recast instructional wording as informational analysis.

A bank can own a valuable asset without being free to sell or pledge it again. Asset encumbrance links secured funding, public deposits, derivatives and contingent liquidity by asking which creditor already has a claim on each asset.

Government deposits can look like ordinary bank funding while consuming pledged collateral and following concentrated tax-and-spending cycles. Deposit insurance, collateral protection and immediately usable liquidity are three separate questions.

Policy rates reach depositors unevenly. Beta, timing, account migration, funding competition and asset repricing jointly shape bank margins and customer returns.

Version note: Expanded rates-and-deposits research adds Q2 2026 FDIC aggregates, dated rate comparisons, explicit denominator definitions, migration arithmetic and monthly timing examples; earlier revisions retained unchanged.

FHLBank advances connect cooperative membership and market funding to secured institutional borrowing. Their economics depend on collateral, required stock, contractual options and the member’s condition as well as the quoted interest rate.

Central-bank liquidity depends on legal access, collateral eligibility, usable loan data and operational execution. The July and September 2026 changes clarify why pledged asset value is different from cash available to borrow.

The LCR and NSFR examine different funding horizons. Understand what each ratio reveals, how liquidity supports financial services, and why usable cash can differ from a reported buffer.

Version note: Broadened liquidity analysis to product commitments and the cost of funding resilience; added a timing example and corrected the source status: the LCR FAQs were rescinded in February 2026 without amending the rule.