Estimados/as Académicos/as,

Les comunicamos que el viernes 12 de mayo a las 13:00 hrs, se realizará el Seminario del Departamento de Administración y DCS, en el que se presentará el trabajo titulado: "Leverage Regulations and Treasury Market Participation: Evidence from Credit Line Drawdowns".

Expone: Sebastián Infante, Chief of the Money Market Analysis Section. Board of Governors of the Federal Reserve System

Abstract: We examine the effects of the supplementary leverage ratio (SLR) on large banks’ participation in U.S. Treasury markets. Exploiting exogenous shocks to credit line drawdowns and data on bank’s holdings of Treasury securities, we show that an increase in banks’ balance sheet size reduces their incentives to participate in the Treasury market. This effect is weaker for banks with higher SLRs and muted when a regulatory change excluded Treasury securities from the computation of the SLR. Accounting for regulatory liquidity or risk-based capital ratios does not change these results. These findings support the hypothesis that banks’ ability to participate in markets for safe assets may be curtailed by leverage regulations.

El evento se realizará en la sala P301 (Diagonal Paraguay # 257, Santiago, Chile) y en modalidad presencial.

Confirmaciones al correo: finco@fen.uchile.cl

Saludos cordiales,

Dirección de Investigación