The latter’s goal, on the other hand, is minimising financial stability risks, and ensuring the orderly functioning of money markets. The provision of unlimited liquidity to the euro area banking system on the part of the ECB, against an expanded array of eligible collateral since mid-October, should effectively eliminate concerns about liquidity risk, and should therefore further reduce pressures in the money markets.
6/9  BIS central bankers' speeches  7/9  BIS central bankers' speeches  The higher capital levels and greater intensity of supervision provide confidence that, notwithstanding the systemic importance of the major banks, the Australian financial system is more resilient to shocks than it was in the past.