The interest rate on such holdings is now tiered: excess liquidity holdings up to six times the minimum reserve holding are not charged the negative deposit facility rate of -0.5 percent. The annual gross savings for banks from the two-tier system are estimated to amount to up to € billion in 2020 compared with the counterfactual projection if the system had not been introduced.
These savings more than offset the additional gross excess liquidity charge of around € billion that resulted from the September cut of the deposit facility rate by 10 basis points. Concluding remarks Let me conclude.