Banks’ repo muscles may have ‘atrophied’ – Borio

claudio-borio-2-16
Claudio Borio

Banks appear to be losing the know-how required to conduct repo market transactions under difficult conditions, as a glut of central bank liquidity reshapes markets, Claudio Borio has warned.

The Bank for International Settlements official said unconventional monetary policy had left a “profound imprint” on market functioning. As banks have become accustomed to excess reserves, withdrawing them can lead to unpredictable market adjustments. “It is as if a muscle had atrophied,” Borio said in

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 [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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 here: