---
title: Bank Positions and Interest Parity
url: https://www.ml-quant.com/papers/ssrn/4920349/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4920349
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4920349
featured: 2024-08-15
citations: unknown
topic: Risk, Credit & Banking
---


# Bank Positions and Interest Parity

Banks' positions regarding covered-interest parity deviations are affected by foreign safe asset scarcity, market power and segmentation, and demand concentration, as per a study using confidential supervisory data.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4920349
- Identifier: SSRN 4920349
- Released: 2024-08-09
- First featured: Quant Letter No. 61 (2024-08-15): https://www.ml-quant.com/issues/2024-08-15/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Risk, Credit & Banking

## Related

- [The Geographic Flow of Bank Funding and Access to Credit: Branch Networks, Local Synergies, and Competition](https://www.ml-quant.com/papers/arxiv/2407.03517/): The study examines the geographic imbalance of deposits and loans, proposing a method to evaluate the impact of branch networks, market power, and scope economies on this imbalance.
- [The Not-so-Hidden Risks of ‘Hidden-to-Maturity’ Accounting: On Depositor Runs and Bank Resilience](https://www.ml-quant.com/papers/arxiv/2407.03285/): The article uses a balance sheet-based model to analyze run risk in banking systems, using the Silicon Valley Bank meltdown as a case study to show how changes in funding and asset composition can increase vulnerability.
- [The Interdependent Relationship between Interest and Non-Interest Income of Indian Banks: A Study of Diversification of Income, Risk, and Traditional vs. Non-Traditional Banking Activities](https://www.ml-quant.com/papers/ssrn/4972716/): Diversification and Risk: The article studies the transition of Indian banks from earning through interest to non-interest sources, and how this diversification affects risk in both traditional and non-traditional banking.
- [Improved Hardness Results for the Clearing Problem in Financial Networks with Credit Default Swaps](https://www.ml-quant.com/papers/arxiv/2409.18717/): The study investigates computational issues in banking networks, particularly in calculating clearing payments after financial shocks. It offers enhanced solutions, including two that are proven to be complete in the realm of real numbers.
- [Reciprocity in Interbank Markets](https://www.ml-quant.com/papers/arxiv/2412.10329/): The research explores the interdependence of banks in financial networks, revealing that smaller banks withdrew from high-value trades during the financial crisis.
- [Measuring Bank Complexity Using Xai](https://www.ml-quant.com/papers/ssrn/4785689/): A machine learning technique shows a link between the complexity and opacity of banks, with complex firms seeing decreased trading activity.