But that does not appear to be the case currently as other indicators of bank creditworthiness are little changed, including spreads on longer term borrowing and CDS premia. 4  2  Debelle G (2012), “Regulatory Reforms and their Implications for Financial Markets, Funding Costs and Monetary Policy”, Address to the Financial Services Institute of Australia, 18 September.
BIS central bankers’ speeches  Graph 2  Instead, our assessment is that in large part, this reflects the new liquidity regime combined with some other dynamics in the market. The graph shows that the widening has been most pronounced at the longer bank bill maturities, and indeed is quite small for a one month bank bill.