How did the Complementary Deposit Facility affect commercial bank fs demand for reserve? Empirical analysis using bank fs financial data

Katsutoshi Takehana () and Hisashi Tanizaki
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Katsutoshi Takehana: Graduate School of Economics, Osaka University

No 21-17, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: In this paper, we investigated how the Complementary Deposit Facility, interest on excess reserves, introduced by the Bank of Japan in Oct. 2008 affected commercial bank fs demands for reserves by empirical analysis using bank fs financial data. Our main findings are summarized as follows. First, interest on excess reserves has the significant impact on the commercial bank fs demand for reserves. Second, although the holdings of reserve with precautionary demand that was clarified in the previous researches w as confirmed in this study as well, the reasons why commercial banks have precautionary demand for reserve were not the same as these papers.

Keywords: reserve demand; the Complementary Deposit Facility; bank fs financial data (search for similar items in EconPapers)
JEL-codes: C23 E52 (search for similar items in EconPapers)
Pages: 17pages
Date: 2021-11
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:2117

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