Jank, Stephan; Mönch, Emanuel; Schneider, Michael - 2021
The reuse of collateral can support the efficient allocation of assets in the financial system. Exploiting a novel … dataset, we quantify banks’ collateral reuse at the security level. We show that banks substantially increase their reuse of …-induced scarcity at low levels of reuse, when the banking system can easily supply collateral through reuse. Repo rates are more …