For derivatives, the initial margin determines the amount of exposure that can be created for a given amount of equity. In turn, the size of the haircut on SFT collateral, particularly in repos, determines the amount of funding market players can obtain for a given amount of collateral.
Turning back to the euro area, the crisis also revealed that the institutional framework of our Economic and Monetary Union – in which the ECB is the central bank tasked with ensuring price stability – needs to be strengthened.