There are three areas in which the new regulation can interact with the central bank’s operational framework. First, the demand for reserves. Second, the participation in the central bank’s longer-term operations. Third, the impact on the collateral pledged to the central bank.
The corporate sector thus transitioned from being a net borrower of funds to being a net lender to the rest of the global economy – in the early 1980s most investment spending at the global level was funded by household sector savings, whereas by 2010 nearly two-thirds of investment spending at the global level was funded by corporate sector savings.