Other formal constraints on bank lending stem from the capital requirements that relate to quantity and quality of the assets that the banks must hold to fulfil regulatory obligations…” See Bank of England Working Paper No.
511, specifically: “Our analysis suggests that QE operating through a portfolio rebalancing channel gave rise to such flighty deposits and that this is a potential reason that we find no evidence of a bank lending channel. Our evidence is consistent with other studies which suggest that QE boosted aggregate demand and inflation via portfolio rebalancing channels.” 19 Bloor, C. et al.