Tiering: The ECB will set a multiple of the.....>

ECB: Tiering: The ECB will set a multiple of the minimum reserves which will be

remunerated at 0%, with holdings at the ECB above this paying the deposit rate

of -0.50%. The multiple has been set at 6 and "may be adjusted by the Governing

Council in line with changing levels of excess liquidity holdings."

- Tiering. With the multiple set at 6x, note that this is much less than the

Danish central bank limit of 20x. We used an example of 4x back in March when we

originally discussed. So this is a decent amount of reserves that can be

remunerated at 0%, but could be expanded much further judging by international

comparisons.

- Tiering will apply from 30 October (APP start on 1 Nov).