4.1.5  New temporary measures to expand the collateral framework and the provision of liquidity  In the context of recent initiatives undertaken by the EU authorities to restore confidence and the appropriate functioning of our financial systems, the Governing Council of the ECB approved last Wednesday a new set of temporary measures designed to enhance the provision of long-term euro liquidity and to expand the list of collateral accepted in the Eurosystem monetary policy operations.
These new temporary measures aim to further enhance the provision of liquidity to solvent banks, while also contributing to restore confidence among market participants in the current environment in which money markets remain under stress and the traditional channels of liquidity transmission are impaired.