In this context, consideration could be given to making DBM as cash-like as possible, at least initially, until more experience is gained. Remuneration of DBM This brings us to the next important question: how should the central bank remunerate DBM held by non-banks?
For the euro area, one option could be to remunerate DBM at the same rate as excess central bank reserves held by commercial banks, i.e. at the rate on the deposit facility. This would mean applying a policy rate directly to funds held by non-banks. This could potentially strengthen the transmission of monetary policy rate decisions to the economy.