This framework is called cross-border collateral arrangement. Other central banks have introduced or have been trying to introduce a similar framework. Since internationally active financial institutions diversify assets located around the world denominated in various currencies, the adoption of such a framework by central banks enables the financial institutions to borrow funds from central banks by using effectively assets located in various countries.
Support to malfunctioning capital markets While the second measure I have just explained is a measure to indirectly support financial institutions' lending to firms by providing financial institutions with ample liquidity, the Bank has also implemented more direct measures, given that this time firms were unable to raise funds in the capital market. One of these measures was the outright purchases of CP.