A non-bank with access to the central bank balance sheet could threaten a bank’s traditional business model under certain circumstances, according to research published by the Bank of England.

In the staff working paper, Paolo Siciliani models the behaviour of “two-sided platforms”, in this case payments providers that service both depositors and merchants. The bank relies heavily on attracting retail deposits for its business, but the non-bank may be able to tempt depositors away by offering a