In addition to its impact on loan sales, the bill would limit the ability of banks to securitise loans or provide collateral to obtain liquidity from the inter-bank market or from the eurosystem.
While these restrictions would be costly even under normal conditions and thereby raise the interest rates charged to households, their impact would be especially de-stabilising in a crisis environment, since the ability to restructure balance sheets and tap liquidity is essential to resilience under crisis conditions.