Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

The toolkit

Governments with big debts borrow cheaply from their own savers: they steer savings to the state, hold the return below inflation and block the exits; in a crisis they rewrite the deal.

Examples and their dates reviewed .

Take the tourThe postwar playbook5 stops. Cap the saver's return, peg the state's borrowing cost, sell bonds to savers, capture deposits, close the exits.

Filter

In force during
Kind of instrument

Steer · Steer savings to the state

Hold · Hold the price of money down

Block · Block the exits

Rewrite · Rewrite the deal in a crisis

Instruments

64 instruments · 142 examples

  1. Steer · Captive demand

    Statutory liquidity ratios met with government securities

    Banks become a captive buyer base for government paper regardless of yield, so the state borrows below market rates out of depositors' money.

    India (in force) · Bangladesh · UK · Spain

  2. Steer · Captive demand

    Treasury-bill floors and coverage coefficients for banks

    Bank deposit growth is automatically recycled into short-term Treasury paper at administered rates, consolidating floating debt and guaranteeing take-up of new bills.

    France · Belgium

  3. Steer · Captive demand

    Minimum government-bond shares for pension funds and insurers

    Long-term household savings held by pension and insurance intermediaries are locked into sovereign paper, creating a price-insensitive domestic investor base that holds yields down.

    Turkey (in force) · India (in force)

  4. Steer · Captive demand

    Reserve requirements payable in government paper

    A non-negotiable regulatory holding is converted into a guaranteed outlet for new government debt, giving the Treasury a captive buyer whose demand is set by deposit volumes rather than yield.

    Italy · Argentina

  5. Steer · Captive demand

    Voluntary war-bond drives and patriotic savings campaigns (moral suasion)

    Social and workplace pressure plus convenience mobilise household savings into fixed-rate government paper during high-deficit periods, often at rates that wartime inflation later erodes.

    UK · US · Canada

  6. Steer · Captive demand

    Forced placement of provident-fund and social-security reserves in government debt

    Compulsory retirement contributions become a large, permanent and price-insensitive source of state financing, with members credited an administered rate rather than a market return.

    Singapore (in force) · Malaysia · Japan

  7. Steer · Captive demand

    Mandatory deposits with the Treasury ('circuit du Trésor')

    Money held in captive deposit circuits becomes zero- or low-cost sight borrowing for the Treasury, covering deficits 'automatically' without market issuance or central-bank advances.

    France · Italy (in force)

  8. Steer · Captive demand

    Mandatory investment of postal and small-savings deposits in government securities

    Retail savings gathered through the post-office network are converted directly into state borrowing without any market test of the rate the government pays.

    UK · India (in force) · Japan

  9. Steer · Captive demand

    Mandatory investment of public trust and insurance funds in government securities

    Surplus contributions are lent to the treasury in non-marketable or marketable bonds, financing deficits without market discipline.

    US (in force)

  10. Steer · Prudential sovereign bias

    Zero risk weights for sovereign exposures

    Makes government debt the cheapest asset for banks to hold in capital terms, tilting bank balance sheets toward the sovereign and lowering its funding cost.

    International · EU (in force) · US (in force)

  11. Steer · Prudential sovereign bias

    Liquidity Coverage Ratio Level 1 treatment of government bonds

    Banks needing a liquidity buffer are pushed to hold large, permanent stocks of sovereign paper, creating structural captive demand.

    International (in force) · EU (in force) · US (in force)

  12. Steer · Prudential sovereign bias

    Large-exposure and concentration-limit exemptions for sovereigns

    Removes the diversification ceiling that would otherwise cap banks' holdings of government paper, enabling the sovereign-bank 'doom loop'.

    International (in force) · EU (in force)

  13. Steer · Prudential sovereign bias

    Leverage-ratio exclusions for government securities and central-bank reserves

    Frees balance-sheet capacity for banks to absorb government bond issuance and central-bank reserves without needing extra capital.

    US · Canada · EU (in force)

  14. Steer · Prudential sovereign bias

    Insurance solvency rules exempting sovereign bonds

    Insurers can match long liabilities with government bonds at no capital cost, steering policyholder savings into sovereign debt.

    EU (in force)

  15. Steer · Prudential sovereign bias

    Money-market-fund reforms favouring government-debt funds

    Cash-like savings migrate from private-paper funds to government MMFs, creating a large captive buyer of Treasury bills.

    US (in force) · EU (in force)

  16. Steer · Prudential sovereign bias

    Stablecoin reserve rules requiring short government debt

    Turns stablecoin issuers into structural buyers of Treasury bills, channelling crypto-dollar savings to government funding.

    US (enacted, not yet in force)

  17. Steer · Prudential sovereign bias

    Fund diversification-limit exemptions for government securities

    Lets retail funds concentrate savings in sovereign debt and lets governments rely on fund demand without diversification limits.

    EU (in force)

  18. Steer · Prudential sovereign bias

    Collateral eligibility waivers and favourable haircuts for government bonds

    Keeps sovereign paper financeable at the central bank, sustaining bank demand for it even when market risk rises.

    Greece

  19. Steer · Tax incentives

    Tax exemptions for interest on public debt

    A higher after-tax return steers portfolios toward public debt and lets public issuers borrow at lower pretax yields.

    US (in force) · Hungary (in force)

  20. Steer · Tax incentives

    Capital-gains exemptions for government securities

    The tax advantage increases demand for state liabilities and can substitute a sovereign claim for privately held inflation hedges.

    UK (in force) · India

  21. Steer · Tax incentives

    Tax-exempt national savings accounts and certificates

    Tax relief recruits household deposits directly into government funding instead of competing private investments.

    UK (in force) · Ireland (in force)

  22. Steer · Tax incentives

    Inheritance and gift-tax exemptions for public debt

    Estate-planning incentives favour government securities over other stores of wealth and can reward long holding periods.

    Italy (in force) · Ireland (in force)

  23. Steer · Directed credit

    Mandatory priority-sector lending quotas

    Administrative allocation replaces part of market-based credit selection and shifts financing costs or risks onto banks and potentially depositors.

    India (in force)

  24. Steer · Directed credit

    Mandatory recycling of postal and regulated savings

    A large retail deposit base supplies administratively allocated financing to government projects and public borrowers.

    Japan · France (in force)

  25. Hold · Rate caps

    Deposit-rate ceilings

    A binding ceiling reduces savers' nominal returns and the funding cost of banks holding public debt, potentially producing negative real returns.

    US · China · Japan

  26. Hold · Rate caps

    Prohibition of interest on current accounts

    Savers must supply zero-interest transaction balances, reducing banks' funding costs and allowing inflation to erode those balances.

    US · India

  27. Hold · Rate caps

    Officially supported deposit-rate agreements

    Coordinated pricing prevents banks from bidding up returns to savers and preserves low funding costs.

    China (in force) · Hong Kong

  28. Hold · Rate caps

    Administered savings rates and formula overrides

    Administered rates prevent competition or inflation from fully feeding through to saver returns and reduce the cost of policy funding.

    Brazil (in force) · France

  29. Hold · Rate caps

    Window guidance and supervisory pressure on bank pricing and lending

    Administrative pressure substitutes for market pricing and can ration credit while maintaining low interest rates.

    Japan · China

  30. Hold · Rate caps

    Bank lending-rate ceilings

    Limits on bank asset yields suppress the returns banks can offer savers and ration private credit, potentially making public debt relatively attractive.

    Bangladesh

  31. Hold · Rate caps

    Usury laws and all-in credit-return limits

    A binding limit removes high-return private lending opportunities and can prevent nominal yields from adjusting fully to inflation or credit risk.

    France (in force) · Canada (in force) · Japan (in force)

  32. Hold · Central bank financing

    Treasury overdrafts and ways and means advances

    Money creation bridges government financing needs without first obtaining voluntary savings at market yields.

    UK · India (in force) · Philippines

  33. Hold · Central bank financing

    Direct central-bank subscriptions to government securities

    The state obtains newly created central-bank money directly rather than having to sell the entire issue to private savers.

    Japan · Canada · Algeria

  34. Hold · Central bank financing

    Central bank as residual buyer of government debt

    The Treasury can resist market-clearing yields because undersubscription is met by central-bank financing.

    Italy · Indonesia

  35. Hold · Central bank financing

    Automatic deficit financing through Treasury bills

    Budget shortfalls automatically generate monetary liabilities instead of forcing tax increases or market borrowing.

    India · Germany

  36. Hold · Central bank financing

    Government bond yield pegs and yield curve control

    Price support holds government borrowing yields below the level that would clear the market without central-bank purchases.

    US · Japan · Australia

  37. Hold · Central bank financing

    Reserve-financed government bond purchases (QE)

    Purchases remove duration risk from private portfolios, raise bond prices and reduce the state's market financing costs.

    US · UK

  38. Hold · Central bank financing

    Maturity extension and Operation Twist

    Removing long-term duration from the market compresses term premiums and cheapens long-term government finance.

    US · India

  39. Block · Capital controls

    Comprehensive exchange controls on payments and capital transfers abroad

    By closing the exits, it traps domestic savings inside the currency area, where they can be held at negative real rates and steered into government debt without leaking abroad.

    UK · Malaysia · Iceland

  40. Block · Capital controls

    Surrender and repatriation requirements for foreign currency and gold

    They transfer hard-currency and gold holdings from savers and firms to the state at a fixed price, removing the main hedge against currency debasement and feeding official reserves.

    US · Argentina (in force) · Russia

  41. Block · Capital controls

    Quotas on residents' foreign-currency purchases and outward remittances

    By rationing access to foreign currency it limits how much household savings can be moved into foreign assets, keeping them in domestic deposits and bonds that pay below-market or below-inflation returns.

    China (in force) · Argentina · India (in force)

  42. Block · Capital controls

    Interest equalization taxes on residents' purchases of foreign securities

    By wiping out the extra yield of foreign securities it keeps domestic savers in home-currency assets at lower domestic rates, supporting cheap domestic borrowing and the balance of payments.

    US

  43. Block · Capital controls

    Mandatory limits and approval regimes for outward investment

    By blocking capital from leaving through corporate investment channels, it keeps savings and corporate cash inside the domestic system and supports the currency and the government's financing base.

    US · China (in force)

  44. Block · Real asset restrictions

    Gold ownership limits and licensing of dealing

    Restricted legal access to bullion or coins reduces the ability to switch savings out of domestic financial claims.

    UK · US

  45. Block · Real asset restrictions

    Bans on cryptocurrency trading and exchange businesses

    Closing crypto markets obstructs an alternative asset and cross-border transfer route outside the regulated domestic savings system.

    China (in force)

  46. Block · Real asset restrictions

    Exclusion of crypto users and exchanges from banking

    Removing access to fiat payment channels makes it harder for savers to enter or exit alternative crypto assets.

    India · China

  47. Block · Real asset restrictions

    Prohibition of cryptocurrency payments

    Requiring domestic payment money prevents alternative assets from becoming a parallel settlement and savings system.

    Turkey (in force) · Indonesia

  48. Block · Real asset restrictions

    Limits on cash payments

    Restricting cash's usefulness channels balances and payments into regulated institutions, making escape from deposit-rate or withdrawal policies harder.

    Spain (in force) · France (in force)

  49. Block · Real asset restrictions

    Rent freezes and fixed base-date rents

    Suppressing nominal rental income reduces property's ability to protect savers against inflation and can make regulated financial savings relatively more attractive.

    US · UK

  50. Block · Real asset restrictions

    Caps on rent increases

    When permitted increases lag prices or costs, the real income from rental savings falls and property becomes a weaker inflation hedge.

    Germany (in force) · UK

  51. Block · Real asset restrictions

    Restrictions on financing foreign real-estate purchases

    Savings that cannot readily buy foreign property remain more exposed to domestic currency, inflation and regulated financial claims.

    China · India

  52. Block · Real asset restrictions

    Household property ownership quotas and eligibility tests

    Households excluded from additional property purchases must choose other savings outlets, potentially including deposits and government debt.

    China (in force) · Singapore (in force)

  53. Block · Real asset restrictions

    Punitive purchase taxes on additional homes

    The tax wedge lowers the relative return on property investment and can steer savings toward financial assets while raising government revenue.

    Singapore (in force) · UK (in force)

  54. Block · Transaction taxes

    Bank debit and credit taxes

    It raises cheap, hard-to-evade revenue from the stock of bank money and penalises moving savings through the financial system, eroding returns on deposits that are not already captured by the state.

    Argentina (in force) · Brazil · Colombia (in force)

  55. Block · Transaction taxes

    Taxes on foreign-currency purchases and outward transfers

    It raises the cost of moving savings into foreign currency or foreign assets, keeping domestic savings captive in local-currency instruments the state can tax or borrow from.

    Argentina · Brazil (in force) · US (in force)

  56. Rewrite · Extraordinary measures

    Deposit freezes, bank holidays and cash-withdrawal limits

    Savers cannot exit deposits into cash, foreign currency or foreign accounts, so their balances can be eroded by inflation, devaluation or later conversion while the banking system and state keep the funding.

    Argentina · Brazil · Greece · Cyprus

  57. Rewrite · Extraordinary measures

    Forced conversion of foreign-currency deposits and contracts (pesification)

    Dollar savers are paid in depreciating local currency at a below-market rate, transferring wealth from depositors to banks, debtors and the state.

    Argentina

  58. Rewrite · Extraordinary measures

    Nationalisation or transfer of private pension assets to the state

    The state captures a large stock of household savings, cancels its own bonds held by the funds or gains a captive buyer, and replaces property rights with unfunded pension promises.

    Argentina · Poland

  59. Rewrite · Extraordinary measures

    One-off levies on bank deposits or wealth

    The state takes a slice of accumulated savings directly, with no chance for savers to move funds once the reference date has passed.

    Italy

  60. Rewrite · Extraordinary measures

    Compulsory or forced loans to the state

    The state raises funds that look like debt rather than tax, repays them later in depreciated money or illiquid paper, and so extracts a hidden levy on savings.

    Brazil · Argentina

  61. Rewrite · Extraordinary measures

    Bail-in of depositors and retail bondholders

    Savers above the insured limit, or retail holders of bank bonds, absorb bank losses directly, and the threat of bail-in pushes them toward insured deposits and government paper.

    Cyprus

  62. Rewrite · Extraordinary measures

    Compulsory surrender (confiscation) of private gold

    Savers lose their inflation and devaluation hedge just before or as the currency is devalued against gold, transferring the revaluation gain to the state.

    US · Australia

  63. Rewrite · Extraordinary measures

    Abrogation of gold, currency and indexation clauses

    Creditors, including holders of government bonds, are repaid in nominal depreciated money instead of the real value they contracted for.

    US · Argentina (in force)

  64. Rewrite · Extraordinary measures

    Forced exchange or reprofiling of domestic debt and deposits

    Domestic holders, who cannot easily exit, are forced to accept late or reduced repayment, lowering the state's financing cost at their expense.

    Argentina