[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-427103-105":59,"doc-detail-427103-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","the-evolving-loansales-market","The Evolving LoanSales Market","","Explores how the loan sales market changes traditional banking economics by allowing banks to make loans without relying on incoming deposits, then sell these loans when depositors seek cash. Analyzes why the long-held “banks are special” rationale—grounded in illiquid loan portfolios and highly liquid liabilities—creates vulnerability to runs, panics, and systemic collapse. Discusses three key modifications from loan sales and evaluates implications for bank profitability, diversification, and regulation rationales, including deposit insurance.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/the-evolving-loansales-market/427103/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/the-evolving-loansales-market/427103.png","ImageObject",300,407,{"name":92,"@type":93},"Đào","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-14","2026-09-29",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"How does the loan sales market differ from traditional banking?","Question",{"text":112,"@type":113},"Traditional banking relies on accepting deposits and using them to make loans. The loan sales market allows banks to originate loans and then sell them when depositors need their money returned.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why does funding illiquid, information-intensive loans with demand-like liabilities create systemic risk?",{"text":117,"@type":113},"Because depositors may struggle to evaluate asset quality and instead withdraw funds at the first sign of trouble. This can trigger runs, panics, and systemic collapse.",{"name":119,"@type":110,"acceptedAnswer":120},"What are the three main ways loan sales modify the traditional view of banks?",{"text":121,"@type":113},"Loan sales (1) reduce reliance on deposits by selling loans, (2) make it easier to obtain cash by selling now-liquid loans, and (3) provide observable loan prices that help small depositors assess bank health.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},427103,1790710841,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":44,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":44,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144},1374402968488,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","# The Evolving LoanSales Market\n\nby Joseph G.Haubrich and James B.Thomson  \nNearly everyone,from daily readersof the American Banker to devotees ofIt's a Wonderful Life or Bonnie andClyde,somehow learns a few basic factsabout banking.Most people know that abank accepts deposits and uses themoney to make loans.Many people be-lieve that if too many depositors wanttheir money back at once,the bank willfail.What would people think if theyknew banks could make loans withouttaking in deposits,and sell loans whendepositors want their money returned?  \nThe loan sales market allows just that.This practice may only mildly inconven-ience Hollywood producers,but it raisesdeeper and more fundamental questionsfor bankers and policymakers.  \nTraditionally,policymakers have viewedbanks as \"special\"because they investprimarily in highly illiquid assets and,byand large,finance these assets with ex-tremely liquid liabilities—checkable de-posits.Bank portfolios,which consist ofilliquid loans,are difficult to value andcostly to liquidate.This makes banks avi-tal resource for the important small-to-medium-business sector.But the abilityto fund high-information assets comes ata cost.Depositors,especially small sav-ers,may find it difficult and expensive toevaluate the quality of bank assets.There-fore,in lieu of routinely monitoring theinstitution to protect themselves fromloss,they rely on their ability to cash outtheir deposits at the first sign of trouble.  \nThus,the consequence of funding illiq-uid,information-intensive loans with li-abilities that are essentially“payableon demand\"is a banking system that isvulnerable to runs,panics,and sys-temic collapses.This \"banks are spe-cial\"view is the rationale for govern-ment supervision and regulation ofbanks,including federal deposit insur-ance and Federal Reserve discount win-dow operations.  \nThe existence of loan sales modifies thetraditional view in three ways:1)a bankcan reduce the need for deposits by sell-ing its loans;2)a bank can sell the now-liquid loans when it needscash;and 3)awidely observable price for loans makesit easier for small depositors to ascertainthe true health of their bank.  \nFrom the banker's perspective,loansales offer both the possibilities ofprofit and the danger of a decline in theimportance of banks.A small bankwith few deposits or low capital canturn over a large number of loans,col-lecting the origination fees and pocket-ing the sales profits.A bank of any sizecan buy loans to diversify its portfolio,becoming less dependent on the upsand downs of local industry.On theother hand,loan sales imply an unbun-dling of the origination and investmentfunctions of bank lending and a reduc-tion in the advantages associated withfunding loans with deposits.To the ex-tent that this erodes the competitive ad-vantage of banks in lending markets,  \nJuly 15.1993  \nThe loan sales market,which reacheda peak in the latter half of the 1980s,remains substantial despite the recentrecession and the falloff in mergerand acquisition activity.Does thisemerging market reflect a dispersal oftraditional banking services oran ex-pansion of banks'fundamental role asfinancial intermediaries?In either case,the answer should lead to further analy-sis of the rationales for federal depositinsurance and bank regulation.  \nThe Evolving LoanSales Market  \nby Joseph G.Haubrich and James B.Thomson  \nNearlyeveryone,fo daly readersof the American Banker to devotees ofIt's a Wonderful Life or Bonnie andClyde,somehow leans a few basic factsabout banking.Most people know that abank accepts deposits and uses themoney to make loans.Many people be-lieve that if too many depositors wanttheir money back at once,the bank willfail.What would people think if theyknew banks could make loans withouttaking in deposits,and sell loans whendepositors want their money returned?  \nThe loan sales market allows just that.This practice may only mildlyinconven-ience Hollywood producers,but it raisesdeeper and more fundamental question","cbCaigiOa0Vsa3kR","https://ap.wps.com/l/cbCaigiOa0Vsa3kR","pdf",2573603,"English","# The Evolving LoanSales Market\n## Traditional View of Banks as “Special”\n## How Loan Sales Modify the Traditional View\n## Implications for Bankers and Policymakers","[{\"question\":\"How does the loan sales market differ from traditional banking?\",\"answer\":\"Traditional banking relies on accepting deposits and using them to make loans. The loan sales market allows banks to originate loans and then sell them when depositors need their money returned.\"},{\"question\":\"Why does funding illiquid, information-intensive loans with demand-like liabilities create systemic risk?\",\"answer\":\"Because depositors may struggle to evaluate asset quality and instead withdraw funds at the first sign of trouble. This can trigger runs, panics, and systemic collapse.\"},{\"question\":\"What are the three main ways loan sales modify the traditional view of banks?\",\"answer\":\"Loan sales (1) reduce reliance on deposits by selling loans, (2) make it easier to obtain cash by selling now-liquid loans, and (3) provide observable loan prices that help small depositors assess bank health.\"}]","The Evolving LoanSales Market | PDF",1790642791,23]