Regulations lower rates and cause imbalances – BoE paper

stock market

Post-crisis regulation of derivatives and bank capital have had some unintended consequences for short-term interest rates and market imbalances, research published by the Bank of England finds.

The authors of the staff working paper study how the European Market Infrastructure Regulation and Basel III impact repo markets, which they note have replaced unsecured lending as the most important source of liquidity in the financial sector.

Angelo Ranaldo, Patrick Schaffner and Michalis Vasios use

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

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

.