Afonso, Gara; Cipriani, Marco; La Spada, Gabriele - 2022
trillion in response to the COVID-19 pandemic. However, whereas banks' reserves at the Federal Reserve have decreased, the … diff-in-diff approach. By exploiting a temporary change in the computation of banks' Supplementary Leverage Ratio (SLR …) implemented in 2020-21, we show that banks' balance sheet costs incentivize them to push deposits toward MMFs and to reduce their …
