Fintech allegedly let funds flow from accounts restricted by the National Crime Agency

Central bank’s Sharon Donnery says lenders should be mindful of the economic outlook when they are setting dividends

Aleksander Berentsen, Hugo van Buggenum, Romina RuprechtMajor central banks remunerate reserves at negative rates (NIR). To study the long-run effects of NIR, we focus on the role of reserves as intertemporal stores of value that are used to settle interbank liabilities. We construct a dynamic general equilibrium model with commercial banks holding reserves and funding investments with retail deposits.

Policymakers tackle unintended consequences of post-financial crisis reforms in era of high interest rates