, as most foreign banks were not subject to the FDIC fee, they absorbed increasing amounts of reserve balances. Furthermore …, foreign banks experienced positive and improving conditions for arbitraging between borrowing reserve balances in the federal … funds market and earning interest on excess reserves by holding those reserves at the Federal Reserve Banks, contributing to …

. Using daily confidential data on wholesale unsecured borrowing and reserve balances, we show that foreign banks, which make … borrowed as reserve balances. With these risk-free trades, banks earn the spread between interest on reserves and the borrowing … rate. Relative to foreign banks, large domestic institutions borrow less often, but when they do, they keep around 99% of …

rates caused by demographic forces. This insight is obtained in a model in which intangible capital cannot attract external … aggregate output. An increase in the share of intangible capital in production reduces the borrowing capacity and increases the …-intense economy, the ability of firms to purchase intangible capital using retained earnings is impaired by low interest rates …

and run risk. Banks choose between liquid and illiquid assets on the asset side, and between deposits and equity on the … liability side. The endogenously determined asset portfolio and capital structure interact to support credit extension, as well … joint implementation of a capital and a liquidity regulation …