These developments are behind proposals to keep central bank’s balance sheet with significant size to allow the use of a programme like the Fed’s reverse repo programme (RRP) where its stock of government securities is available for repo operations against cash.
Looking at the Luxembourg legal and institutional framework for crisis prevention and management, important weaknesses need to be settled. Given the relevance of the financial sector, I hope that the legislator will in the end acknowledge the mission of the BCL in that field. I will also not repeat my concerns about the non funded depositor guarantee scheme in Luxembourg.