If financial institutions hold excess no-risk no-return current account balances, an incentive will emerge to increase the holding of such assets as loans, corporate bonds, stocks, and foreign currency-denominated assets which generate some returns even though accompanied by some risk. In addition, the quantitative increase itself might affect expectations of the public.
This represents the negative side to the fall in oil prices, one being felt by the oil-producing regions of the country. New domestic oil drilling has plunged over the past few months, and we have also seen a slowdown in activity in sectors that supply oil production companies, including steel and certain types of machinery.