While this makes good political sense, it has had serious side effects – as it favours large, internationally active banks over smaller institutions. Particularly for credit institutions that are able to strongly optimise their employment of capital in order to benefit from higher returns, this is worth all the effort.
2/4  BIS - Central bankers' speeches  Let me now go back to the specific topics of this year's edition of the conference and briefly describe the papers that will be presented in these seven sessions: First, Enrique Mendoza and Vincenzo Quadrini's paper addresses a potential mechanism behind the observed decline in global interest rates.