These standards provide a high degree of assurance regarding the stability of these entities, but they don’t rule out the possibility that they could experience severe financial difficulties, prejudicing the stability of the overall financial system. Given this, it is important that there are appropriate arrangements in place to deal with such an eventuality, should it ever arise.
Among those non-standard measures, as we use to call them, the most prominent one is the full allotment liquidity provision through our refinancing operations with euro area banks – against good collateral and at the main refinancing rate prevailing at the time for several maturities extending well beyond that of the weekly operations.