Quantitative Easing Results in Deterioration of Banks’ Balance Sheets
2 Pages Posted: 22 Jun 2014
Date Written: June 18, 2014
Abstract
It is shown than Quantitative Easing implemented in US to stimulate lending and economy growth results in deterioration of banks’ balance sheet. It is shown that while in the result of QE cash assets in US banks increased significantly on liability side the rise of non-interest bearing demand deposits was not so significant. Thus QE and increase of cash in bank assets has negative influence on banks’ balance sheet.
Keywords: Quantitative easing, banks' balance sheet
Suggested Citation: Suggested Citation
Najafov, Salman, Quantitative Easing Results in Deterioration of Banks’ Balance Sheets (June 18, 2014). Available at SSRN: https://ssrn.com/abstract=2456435
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