A Smart Contract to Increase Intermediation Capacity in the Repo MarketSmart Contract • April 24th, 2023
Contract Type FiledApril 24th, 2023Equation 2 shows that a leverage lower bound L places a limit on repo volume and that attainable repo volume declines as the lower bound increases. When the SLR is binding, an increase in the leverage lower bound will reduce the volume of repo transactions a bank will transact, holding fixed the rest of its portfolio.