Banks accessing the Reserve Bank of Australia's new secured lending facility will likely pay a fee of just five to ten basis points. That's the best estimate of Professor Kevin Davis, research director at the Australian Centre for Financial Studies.Two weeks ago, Davis published a paper warning that the facility and other liquidity arrangements were likely to have a "substantial" impact on Australian banks.But yesterday Davis said he was comfortable that the issues raised in the paper would be dealt with by the RBA and the Australian Prudential Regulation Authority before the arrangements were implemented.The new arrangements, including the RBA's secured lending facility, are required to enforce the liquidity coverage ratio (LCR) required under the Basel III agreement. The LCR aims to ensure banks can continue to provide funds during a market dislocation such as that of late 2008.The LCR requires banks to hold a proportion of their assets as highly liquid government securities, but Australia's low government debt makes it impossible to be sure Australian banks could meet this requirement. The RBA facility will allow Australian banks to continue meeting the LCR through central bank lending.Davis said yesterday that the fee for the use of the facility could not be higher than 25 basis points, and his best estimate was that it would be between five and ten points.APRA and the RBA have begun what they say will be extensive consultations with banks on the liquidity arrangements.