These measures, which reflect the very significant strengthening of the Eurosystem’s intermediation role during this period of turbulence, have allowed solvent banks continued access to liquidity despite the dysfunctional nature of the money market. They have also helped to alleviate the tensions observed in certain sectors of the money market.
Rather, its purpose is to enable market participants and the Bank to engage in a constructive dialogue that will translate into potential regulatory reforms and help to strike the right balance between financial innovation and risk reduction.