6  BIS central bankers’ speeches  In this way, the Bank aims to generate massive excess reserves of financial institutions to encourage a change in the investment behavior of banks, life insurance companies, and pension funds. It is no simple matter to discuss whether portfolio rebalancing will spread among all investors, as there are also individual regulatory and accounting factors at work.
In addition, such changes would not occur immediately. Nevertheless, I look forward to the progress in rebalancing despite the institutional constraints.