- wide impact : money market rates decrease and rate dispersion increases at quarter - ends. [ 27 ] focusing on the regulatory environment in the aftermath of the global financial crisis, the conference paper by correa, du and liao ( 2020 ) investigates how u. s. global systemically important banks supply dollar liquidity in repo and foreign exchange swap markets. in reaction to the covid - 19 pandemic, the ecb provided temporary regulatory relief to banks. the most relevant measures for money market functioning included the relaxation of the lcr requirement and the temporary exclusion of central bank reserve holdings from the leverage ratio. the relaxation of the lcr requirement enables banks to use their liquidity buffers under stress, even if this implies that their lcr falls below the required minimum level of 100 %. this measure thus allows for more flexibility in banks ’ liquidity management. the temporary exclusion of central bank reserve holdings from the leverage ratio alleviates bank balance sheet constraints and contributes to reducing the quarter - end effects in money markets. it also ensures that bank participation in monetary policy operations is not unduly affected by the regulatory requirements. the introduction of these temporary regulatory relief measures is expected to support the functioning of money markets beyond the year - end. this also has positive ramifications for the smooth transmission of the eurosystem ’ s monetary policy decisions to the real economy. conclusion i would now like to conclude my remarks. i have shown that, since the global financial crisis, money markets have experienced important structural shifts. these changes likely supported the functioning of money markets during the covid - 19 pandemic. money market activity remained comparatively resilient. most importantly, the decisive policy response by the eurosystem prevented localised tensions from turning into a broader liquidity crisis, thereby ensuring the smooth transmission of our monetary policy. looking ahead, three developments deserve careful monitoring. first, the availability of collateral in secured markets will remain decisive for market functioning, particularly against the backdrop of ongoing central bank asset purchases, even if collateral scarcity is mitigated by the broad fiscal policy response to the covid - 19 pandemic. second, a high level of excess liquidity may further reduce cash - driven activity in some market segments, potentially raising challenges for setting money market benchmark rates. and third, non - bank financial institutions play an increasingly important role in money markets. their market activity has a bearing on the formation of some money market rates, including the €st

performed by credit functions and assessment of a bank's capital assessment process. conclusion implementation of basel ii has been described as a long journey rather than a destination by itself. undoubtedly, it would require commitment of substantial capital and human resources on the part of both banks and the supervisors. rbi has decided to follow a consultative process while implementing basel ii norms and move in a gradual, sequential and co - coordinated manner. for this purpose, dialogue has already been initiated with the stakeholders. a steering committee comprising representatives of banks and different supervisory and regulatory departments is taking stock of all issues relating to its implementation. as envisaged by the basel committee, the accounting profession too, will make a positive contribution in this respect to make indian banking system stronger.