When reducing costs instead of building up new operations, it is imperative to outsource all such activities where there are more efficient service providers available. Information technology and payment processing in particular is just such an example. It is here where the benefits of scale can be brought on.
The decision to want to use both the Standing Deposit Facility and the Standing Credit Facility will be at the discretion of individual clearing banks, that is, banks permitted to have accounts at the central bank. Fourth, the current intra-day and overnight Credit Facility is retained to accommodate end of day settlement of positions (non-discretionary), currently set at 3.75 percent.