Regulations on Global-SIFIs should help address possible market distortions arising from the too-big-to-fail hypothesis. For emerging economies with highly liberalized capital account, it is of utmost importance from a macro-prudential perspective to guard against adverse shocks of external origin and associated volatile and pro-cyclical capital flows.
At the same time, as the change in the ceiling for the remuneration of governments will only come into effect today, the full effects of the measure may only become visible over time, and we remain attentive to the spread between different money market rates as well as collateral scarcity concerns.