Regulatory effects on short-term interest rates
分析了EMIR和巴塞尔III监管对短期利率的影响，发现监管通过扩大回购供给和抑制银行借款需求，导致短期利率下降和市场失衡，产生意外后果。
We analyse the effects of EMIR and Basel III regulations on short-term interest rates. EMIR requires central clearing houses (CCP) to continually acquire safe assets, thus expanding the lending supply of repurchase agreements (repo). Basel III, in contrast, disincentivises the borrowing demand by tightening banks’ balance sheet constraints. Using unique datasets of repo transactions and CCP activity, we find compelling evidence for both supply and demand channels. The overall effects are decreasing short-term rates and increasing market imbalances in various forms, all of which entail unintended consequences originated from the new regulatory framework.