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I think the goal of QEII is not just to increase banking reserves.
Labour can accuse the coalition of messing up a chance to increase banking competition (its latest theme) while the Tories and the Lib Dems can shoot back that they might not have been so keen on selling to the Co-op if Labour had shared its file on the heroic appetites of the bank's former chairman, Rev Paul Flowers.
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It will increase banks' reliance on Europe's central banks, he said.
They want to increase banks' capital ratios to avoid future financial crises.
The authors theorise that the seasonal pattern may increase banks' profits by enabling them to price discriminate between firms.
The central bank may also increase bank reserves by making loans to the banks or to such intermediaries as bill dealers or dealers in government securities.
The goal of the TARP, after all, was not simply, or arguably even primarily, to increase bank lending in the short term.
It moved twice during the month to increase banks' sight deposits through which banks can withdraw money, to 200 billion francs from 80 billion francs.
Bank industry representatives have argued that stricter capital and liquidity requirements increase banks' financing costs, which they must pass on to customers.
This came on top of 36 billion yuan ($5.7 billion) of subsidies for energy-saving household appliances and ongoing efforts to increase bank lending.
On May 8th the pact was put into action when the government sent a package of bills to Congress to increase bank lending and competition.
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CEO of Professional Science Editing for Scientists @ prosciediting.com