The reduction was largely due to early repayments of TLTRO III operations as a result of the recalibration of remuneration conditions mentioned earlier. On the liability side of the balance sheet, these repayments were reflected in a decline in credit institutions' deposits, which fell from € billion to € billion.
It is equally important that markets can play their disciplinary role in an efficient manner. This requires transparency in the surveillance process and the realisation of markets that the no-bail out clause does indeed constitute one of the binding constraints of EMU.