What is a
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two tier system
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A Dual Board or Two Tier system is a corporate structure system that consists of two separate Boards of directors that govern a corporation. The roles and relationships between the two boards vary across countries. ... Using a two tier system might also result in "more monitoring" and "less aggressive performance targets".
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The two-tier system creates a difference between excess reserves and overnight deposits, since only excess reserves can be exempt from the negative deposit facility rate. Overnight deposits will continue to be remunerated at the ECB's deposit facility rate.
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