However, if the fee is too high, this could trigger a disruptive shift away from using the CLF facility and create distortions in the markets that use HQLA. Accordingly, we have concluded that the fee should be increased moderately and occur in two steps.
The fee will rise from 15 to 17 basis points in January 2020 and to 20 basis points in January 2021. When taken together, these two changes to the settings for the CLF will result in a small increase in the cost of the CLF for the banks.