The mins through the June 18-19 Fed conference show that the Fed is considering permitting banking institutions to make use of security, such as for example T-Bills for extra reserves. They’ve been considering starting a repo center that really leads to banking institutions t-Bills that are simply posting of money for extra reserves. The moments reveal a true range benefits and drawbacks with all the approach. It might be a good idea to have banks only post T-Bills for extra reserves above $20 billion.
Fed minutes — banks can use T-Bills as collateral for excess reserves june weiterlesen