Cash Pools (Pozsar)

Institutional cash pools and the triffin dilemma of the U.S banking system by Zoltan Pozsar, published by IMF. “Through the profiling of institutional cash pools, this paper explains the rice of the ´shadow`banking system from a demand-side perspective. Institutional cash pools prefer to avoid too much unsecured exposure to banks even through insured deposits. Short-term government guaranteed securities are the next best choice, but their supply is insufficient.”