wholesale funding

Wholesale funding refers to the process where banks or financial institutions raise large amounts of money by borrowing from other institutions, large investors, or markets, rather than from everyday customers through deposits. This funding is often used to support lending activities, investments, or operations. It can include borrowing through short-term instruments like bonds or certificates of deposit, or longer-term loans. Wholesale funding enables financial institutions to access substantial capital quickly, but it can also introduce liquidity risks if they are unable to repay or renew these funds in times of financial stress.