The Usage of Security Lending Facilities under Unconventional Monetary Policy: Evidence from Sweden - Latest

• The Usage of Security Lending Facilities under Unconventional Monetary Policy: Evidence from Sweden

  Staff working paper 2026-9 Marianna Blix Grimaldi, Fabienne Schneider, David Vestin

  This paper examines the interaction between quantitative easing (QE) and the securities lending facility (SLF) using a detailed dataset on Riksbank QE purchases, Swedish DMO SLF transactions and OTC repo deals. A theoretical model further shows how excess demand for assets and search frictions shift the SLF from a backstop to a first-resort tool.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E5, E52, E58, G, G2, G21 Research Theme(s): Financial markets and funds management, Market functioning, Market structure, Financial system, Financial institutions and intermediation, Monetary policy, Monetary policy tools and implementation