Overall, stock market wealth fell $ trillion (or 46 percent) between its peak in the first quarter of 2000 and its trough in the third quarter of 2002. The flow of funds accounts are published quarterly and are available at www.federalreserve.gov/releases/z1. 2  BIS central bankers’ speeches  various forms of short-term wholesale funding, including commercial paper, repos, securities lending transactions, and interbank loans.
The ease, flexibility, and low perceived cost of short-term funding also supported a broader trend toward higher leverage and greater maturity mismatch in individual shadow banking institutions and in the sector as a whole. While banks also rely on short-term funding and leverage, they benefit from a government-provided safety net, including deposit insurance and backstop liquidity provision by the central bank.