Eligibility, Bank Liquidity, Basel 3, Bank Credit and Macro-Prudential Policy: History and Current Issues

20 Pages Posted: 10 Sep 2014

See all articles by William A. Allen

William A. Allen

National Institute of Economic and Social Research

Date Written: September 9, 2014

Abstract

The paper described the historical use of commercial bills in Bank of England operations, and suggests that by making more active use of the policy instrument of central bank asset choice, and by acknowledging the connection between liquidity regulation and open-market operations, central banks could better achieve some of their macro-prudential policy objectives and stimulate high-quality bank lending.

Keywords: commercial bills, bills of exchange, eligibility, bank liquidity, Basel 3, Liquidity Coverage Ratio, overfunding, monetary targets, macroprudential policy

JEL Classification: E52, E58

Suggested Citation

Allen, William A., Eligibility, Bank Liquidity, Basel 3, Bank Credit and Macro-Prudential Policy: History and Current Issues (September 9, 2014). Available at SSRN: https://ssrn.com/abstract=2493767 or http://dx.doi.org/10.2139/ssrn.2493767

William A. Allen (Contact Author)

National Institute of Economic and Social Research ( email )

2, Dean Trench Street
London, SW1P 3HE
United Kingdom

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