Fecht, Falko; Nyborg, Kjell G.; Rocholl, Jörg; … - 2016
studying an extensive dataset of banks' liquidity uptake and pledged collateral in central bank repos. We document systemic …Central banks are under increased scrutiny because of the rapid growth in, and composition of, their balance sheets … arbitrage whereby banks funnel credit risk and low-quality collateral to the central bank. Weaker banks use lower quality …