@techreport{049e0e5ef57b4ef8ab8bbcbd00568d6e,
title = "Preferential Regulatory Treatment and Banks' Demand for Government Bonds",
abstract = "The purpose of this paper is to analyze the impact of preferential regulatory treatment on banks{\textquoteright} demand for government bonds. Using unique transaction-level data, our analysis suggests that preferential treatment in microprudential liquidity and capital regulation significantly increases banks{\textquoteright} demand for government bonds. Liquidity and capital regulation also seem to incentivize banks to substitute other bonds with government bonds. We also find evidence that this {"}regulatory effect{"} leads banks to reduce lending to the real economy.",
keywords = "government bonds, financial markets, regulation, liquidity, capital allocation",
author = "Clemens Bonner",
year = "2015",
month = dec,
day = "3",
language = "English",
volume = "2015-056",
series = "CentER Discussion Paper",
publisher = "CentER, Center for Economic Research",
type = "WorkingPaper",
institution = "CentER, Center for Economic Research",
}