Before the era of large central bank balance sheets, banks relied on incoming payments to fund outgoing payments in … order to conserve scarce liquidity. Even in the era of large central bank balance sheets, rather than funding payments with … balances. Our findings are timely, given the ongoing shrinking of central bank balance sheets around the world in response to …

the retail deposit supply owing to, for example, a decrease in bank reserves or in money demand, banks try to substitute … monetary policy transmission through the bank lending channel by limiting the funding substitution of large banks. …

unsolicited deposit shocks resulting from unconventional energy development and estimate bank allocations of these deposits. In …

In a floor system of monetary policy implementation, the central bank remunerates bank reserves at or near the market … for the public sector and may even require the government to subsidize the central bank. We show that this is not the case …. Using the monetary general equilibrium model of Berentsen et al. (2014), we show how a central bank that supplies reserves …

This paper provides an analytically tractable theoretical framework to study the optimal supply of central bank … reserves when the demand for reserves is uncertain and nonlinear. We fully characterize the optimal supply of central bank …