##otment and to reduce the corridor of standing facilities from 200 basis points to 100 basis points around the interest rate on the main refinancing operation. by providing uncapped access to euro liquidity ( of course, against adequate collateral ), the new format of the main refinancing operations will provide an important contribution to easing liquidity tensions in the euro money markets. in addition, in another crucial step, on 8 october the eurosystem adjusted its monetary policy stance to address the changing balance of risks to the outlook for medium - term price stability. yesterday, the eurosystem announced a new set of extraordinary measures to temporarily expand the list of assets accepted as collateral in the eurosystem lending operations and to enhance provision of euro long - term refinancing over the current and next quarters. however, before discussing more in detail about the changes to the monetary policy stance and the latest temporary adjustments to the operational framework, i would like to highlight the role of increased international cooperation in the supply of usd liquidity in international money markets. 4. 1. 2 increased international cooperation as pointed out before, in addition to domestic operational responses, central banks have further strengthened their cooperation throughout the turmoil, while preserving differences in their operational frameworks. they have enhanced their cooperation first by means of enhanced information sharing and collective monitoring of market developments and later on through coordinated steps to provide liquidity. the main example of such coordinated actions among central banks is the by now familiar us dollar term auction facility, which started in december of last year and in which the ecb agreed with the us federal reserve to grant loans in dollars to euro area banks. these usd liquidity providing operations have increased over time in terms of size and number of participants, with up to nine central banks now participating. as far as the eurosystem is concerned, the scope of this facility has significantly increased over time in terms of maturities covered and volumes involved. last monday the governing council took a further step with the decision – announced together with bank of england and the swiss national bank – to conduct operations at 7 -, 28 - and 84 - day maturities at fixed interest rates and with full allotment. as a result of this decision, euro area counterparties will be able to borrow as much usd liquidity as they wish against eligible euro - denominated collateral. the supply of usd is guaranteed by an unlimited temporary reciprocal currency arrangement between the federal reserve and the ecb that will remain in place for

luis de guindos : eu banking package contribution by mr luis de guindos, vice - president of the european central bank, at the seminar on the capital requirements regulation and directive ( crr / crd ), madrid, 9 june 2023. * * * crr3 / crd6 - key last step to fully leverage on the lessons learned from the global financial crisis it is a great pleasure to take part in this seminar about the outstanding basel iii reforms in europe. these rules have been developed and agreed upon at international level by central banks and bank supervisors, in response to the lessons from the global financial crisis. one important lesson has been that banks tend to downplay their risks using internal models. the core of the 2017 reforms – the output floor – ensures that a limit is established on how much banks can tweak their risk profile using their internal models. this is an essential achievement. i will focus my remarks today on the fact that we need to protect this achievement, and we need to continue drawing lessons for our eu banking framework, including from the recent episode of bank stress. benefits of strong regulation and supervision the recent episode of stress in the us and swiss banking sectors reminded us of the importance of strong regulation and strong supervision. it was a wake - up call highlighting the merit of sticking to the agreed standards. there are many lessons that can be drawn from this episode. let me focus on three in relation to finalising our banking framework, the crr3 and crd6. first, we have seen that a strong regulatory framework eventually pays off. euro area banks have been remarkably resilient in response to the pandemic, the russian war and the recent episode of bank stress. significant banks'common equity tier one capital ratio stands at 15. 3 % on average, with liquidity well above regulatory minima. we have also seen improvements in the diversification of funding sources and bank profitability. at the same time, resilience of the euro area banking to the latest episode of stress should not lead to complacency. second, we have seen that weakening the regulatory framework can create systemic risks. pockets of vulnerability can emerge easily, particularly where standards are not applied fully. and these vulnerabilities can quickly grow into broader financial stability risks. in this context, let me comment on the liquidity coverage ratio, the lcr. some attention has been paid to this element of the basel framework and whether meeting the lcr would