When the dust settles on this deposit crisis, banks will have to buy more bonds as financial authorities are likely to tighten LCR rules and ask banks to re-calibrate modeled outflows from corporate deposits. Lower for longer in core rates, while Italy is at risk?
![Out of the box #4 – Banks will have to buy MORE bonds when the dust settles](https://stenoresearch.com/wp-content/uploads/2023/04/Outside_The_Box-1080x675.png)