In the case of the CLF however, banks will be free to fully access funds to the extent of the committed credit lines. This could potentially make it more difficult for the central bank to manage the quantity and price of short term funds in a crisis situation.
Interaction between prudential liquidity standards and monetary policy Another area where the Basel liquidity standards might affect central bank policies is the transmission of monetary policy. This interaction arises in the context of the NSFR or, in New Zealand, the Core Funding Ratio (CFR).