The distribution of excess liquidity across sectors So, provided banks have sufficient collateral, secured interbank lending has been able to at least partly offset the remaining constraints in unsecured cross-border lending. This was the first feature I alluded to. The second feature that warrants caution relates to the distribution of liquidity across sectors, including holdings outside the euro area.
The implications of this feature can be best appreciated when looking more closely at the trades underlying the € You can see this on the left-hand side of my next slide.