Moreover, it would increase the value of all eligible collateral that banks have at their disposal and promote its use in interbank transactions, given that at any time it can be used to obtain liquidity from the central bank.
Second, the narrowing of the corridor between standing facility rates, as well as the introduction of fixed rate tenders, constitute an effective protection against liquidity risk. More specifically, these measures should reassure the markets that liquidity is available at a low opportunity cost, when needed.