This turned up the competitiveness temperature in the market for bank credit which, up to that point in time, had become polarised between banks with scarce access to funding and limited capacity to create credit, on the one hand, and banks with normal access to funding on the other.
None of the two types of banks had a capacity or an incentive to provide credit to the economy on affordable conditions. The new operation put all banks on the same funding footing and thus created the conditions for the banking industry as a whole to start competing again for good credit.