I know there has been some scepticism about this kind of rule-based approach, and it’s important to recognise that the Committee’s proposal leaves a lot of scope for flexibility and discretion at the national level. In my view, that’s going to be very much needed.
The NSFR will help to enhance the medium to long-term funding needs of banks thereby mitigating liquidity runs. Let me now turn to the second of the two proposed liquidity measures, the NSFR.