In considering policy options the Bank could take, the Bank’s options within the conventional monetary policy framework were limited, given that short-term interest rates – ranging from overnight to longer-term rates – were already at levels that left little room for a further decline.
They may push for asset sales, higher dividends, share repurchases, or other changes that make the firm an attractive target to potential acquirers. In my view, internal and external forces have come together to reduce cash levels from their recent highs, although they remain above historical norms.