"A key aspect of any move to negative interest rates would be to encourage banks to lend more by making it expensive to keep excess liquid assets on deposit at The Bank. This is rather ironic as the Basle 3 rules and pressure from the FSA on lenders to increase their liquid assets has had the exact opposite effect.
http://www.financialreporter.co.uk/view.asp?ID=12095&utm_source=Sign-Up.to&utm_medium=email&utm_campaign=11064-289207-breaker+1+28th+feb
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