2/4  BIS central bankers' speeches  On the other hand, those who choose to “stay home” so to speak, are not necessarily shielded from heightened competition. Indeed, banks need to have a good competitive strategy even if they are not immediately aspiring to be QABs. We have seen how foreign banks that enter our market reshape competitive forces.
The banks with excess liquidity have an incentive to pass it on to other institutions or use it to fund new loans. We have had some success on both scores and the stimulus to demand has benefited the European and global economies. Many market commentators link negative deposit facility rates mostly with exchange rate policy.