The Volcker Rule reduces the specialness of banks in maturity intermediation by effectively forcing DIs to hold a matched maturity book.

Question

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The Volcker Rule restricts banks from engaging in certain proprietary trading activities and owning hedge funds or private equity funds. It also puts limits on banks' ability to invest in certain types of securities. While it does not explicitly require banks to hold a matched maturity book, it does limit their ability to engage in maturity transformation, which may reduce the specialness of banks in maturity intermediation.

The Volcker Rule Reduces the Specialness of Banks in Maturity