BIS paper finds reserves scarcity even during QE era

Banks still relied heavily on incoming payments to replenish funds, researchers find

bis-centralbahnplatz-tower-2

Despite supposedly abundant reserves created by quantitative easing, US banks still rely heavily on incoming payments to replenish their accounts, research published by the Bank for International Settlements finds.

Researchers Gara Afonso, Darrell Duffie, Lorenzo Rigon and Hyun Song Shin note in the pre-QE era it was widely recognised there was “strategic complementarity” in the payments system. If all banks processed payments quickly, then their funds would be frequently topped up, allowing

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.