APRA shuts the CLF, tells banks to buy assets

[This is an edited version of a post that was first published on livewire, on 10 September 2021] In a move that’s a bit more aggressive than I had expected, APRA just announced that they will close the CLF (Committed Liquidity Facility).   The CLF will be reduced in four equal steps (1 Jan’22: $104 billion; 30 Apr’22: $70 … Read more

Get the banks to buy the bonds (or how to better align fiscal, monetary and bank regulatory policies)

[This is an edited, updated, and expanded version of a post that first appeared on livewire] The COVID-shock of 2020 put a spotlight on a design flaw in Australian regulations. At a time when governments are borrowing lots of money, and the RBA is buying government bonds to boost the economy, regulations discourage banks from … Read more