In part, this reflects the side effects of the unconventional policy measures that we took to maintain price stability in the euro area.2 As you can see on my next slide, declining transaction volumes in EONIA over the past three years coincide with the start of our large-scale asset purchases and the associated mounting excess liquidity in the system.
2 / 10  BIS central bankers' speeches  But part of the decline also reflects a stronger role of non-banks in managing liquidity. I will come back to this in a minute. These two factors together have lowered the ability of EONIA to accurately reflect banks’ borrowing costs.