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In the beginning, conglomerates by using a payment institution with the apex would then experience decrease funds demands, which contributed to their aggressive advantage compared to large financial institutions. Just lately, the authorities have addressed this challenge by establishing commensurate capital polices amongst both of these sorts of conglomerate types.
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Assurance of ample liquidity for contributors. There are a few timing problems, because the BCB’s STR liquidity transfer mechanism is closed at evenings and on holiday seasons and weekends, and contributors ought to cope with any liquidity shortages by using the interbank market.
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