Wholesale borrowing

Nobody seemed to worry that the Northern Rock (a UK bank) depended heavely on wholesale borrowing while indulging in more risky mortgage loans.

Nessuno sembrava preoccuparsi che la Northern Rock dipendesse per la maggior parte da ???? mentre continuava con mutui più rischiosi.

What about my translation?
  • pescara

    Senior Member
    Lo spiego in inglese perche' non so se lo faro' bene in italiano. Wholesale borrowing means when a bank borrows money in the capital markets, i.e., from other banks, using bonds, etc., instead of through deposits. Deposits are considered retail financing. Deposits are generally a more stable source of funding. In a crisis, wholesale borrowings (which are generally short term, sometimes as short as overnight) can go away very quickly, as the lenders get worried and don't renew the loan when it matures. Depositors aren't as quick to take their money back in a crisis because, for example, if you have a 6-month Certificate of Deposit, you can't withdraw the money until the end of the six months.

    Spero che sia chiaro.
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