This will allow the banking system to absorb liquidity shocks easily. The volatility of money market rates will, as a consequence, be reduced. Also, fine tuning operations will not have to be used frequently, which will mean that markets are less affected by central bank interventions than they would otherwise be.
The second objective of the minimum reserve system is to enlarge the demand for central bank money, so as to enlarge the liquidity deficit of the banking system vis-à-vis the European System of Central Banks. This will safeguard the role of the European System of Central Banks as a key provider of liquidity to the banking system.