Liquidity provided through asset purchases can be lent out again via securities lending, thereby mitigating the encumbrance of collateral. 27. Tighter collateral requirements provide additional incentives. Counterparties can only borrow from the standing loan facility if they provide high quality assets.
While I would like to refrain from commenting on the details, since the contents of the discussion at the MPM as a rule should be disclosed only in the form of the minutes and transcript, let me discuss here my general views on monetary easing.