Moreover, when you take into account the fact that to access the facility, an institution has to pay a penalty rate and, in most cases, with greater haircuts than previously applied, a “market-based” valuation from historical rates would imply a low fee. However, part of the point of the new liquidity regulations is to recognise that the market has underpriced liquidity in the past.
Overall the two horses look forward and together make sure that the carriage runs smoothly on a bumpy road. Thank you for your attention. 8  EBA (2016): Risk Assessment of the European Banking System. Dec. 2016. https://www.eba.europa.eu/documents/10180/1315397/EBA+Risk+Assessment+Report_December+2016.pdf Seite 5 von 5