Following the imprint of the ECB's asset purchase programme on global bond and deposit flows
Stefan Avdjiev (),
Mary Everett () and
Hyun Song Shin
BIS Quarterly Review, 2019
We trace the imprint of the ECB's expanded asset purchase programme (APP) on international bond portfolios and euro-denominated deposits. Our analysis suggests that non-bank financial institutions (NBFIs) located outside the euro area sold large volumes of euro area government bonds and kept a substantial fraction of the proceeds as euro-denominated deposits, primarily in UK-resident banks. Since the APP's modalities did not allow the NBFIs to engage directly with the Eurosystem, their deposits left an international trail of euro-denominated claims. Our findings highlight the role of the United Kingdom as a gateway to the euro area financial system for investors outside the euro area.
JEL-codes: E50 E52 F30 F40 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:bisqtr:1903g
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