The macro-prudential objective can be defined as limiting the costs to the economy from financial distress, including those that arise from any moral hazard induced by the policies pursued. One could think of this objective as limiting the likelihood of the failure, and corresponding costs, of significant portions of the financial system. This is often loosely referred to as limiting “systemic risk”.
Most of the funding was disbursed in a period of a few months, and now, roughly 18 months after the start of the crisis, the nearly $ trillion in credit provided through the liquidity facilities have been paid down to slightly more than $ billion.