Crucially, the elimination of the recourse to ELA will allow banks to design and implement credible medium-term credit expansion plans. Against this backdrop, financing of non-financial corporates for working capital or investment projects would be given priority. That said it is also important to restore the access of the household sector to credit after a protracted period of almost a complete standstill.
This agenda is massive because we need to focus on trading and post-trade infrastructure (from CCPs to CSDs, to SSS, TRs) to applying established standards (RTGS for large value payments and securities settlements to viable forms of deferred net settlement for the more retail payments) to streamlined processes (DvP and the settlement cycles), and to acceptable products and the requisite policies and regulations to address financial risks.