However, as financial markets highly developed and Keynesian influence waned, and based on the assumption that arbitrage in financial markets works perfectly, the so-called  5  "Wallace neutrality," holding that asset purchase operations by central banks have a neutral effect on asset price formation, gained traction.6 While economic theory provided these two conflicting views, central banks -- tasked with the conduct of monetary policy -- weighed up the options, taking the limitations and problems suggested by theory into account, and devised new policy schemes.
This becomes especially important for infrastructure, where banks can be essential in early stage construction financing. Since construction lasts for 5–7 years, banks should be able to raise long tenor money for these purposes. But if they raise such money today, they immediately become subject to CRR and SLR requirements, and any lending they do attracts further priority sector obligations.