2  BIS central bankers’ speeches  This acknowledges the role of central bank eligibility in underpinning private market liquidity as well as the central bank’s ultimate role as lender of last resort to the banking system.
Restrictions are placed on holdings of the lower quality “secondary” liquid assets in order to ensure that banks hold a majority of primary rather than secondary liquid assets. More importantly, from an overall funding risk perspective, RBNZ introduced a Core Funding Ratio4 (CFR) similar to the proposed NSFR. The current minimum requirement of 75 percent was phased in over a three year period.