What in fact happens is that a bank that wants to borrow from the Reserve Bank must first acquire a government bond (or Treasury Bill or Land Bank bill) - a financial instrument of the highest quality, backed by the government.
BIS Review 66/2009  1  Last but not least, I am proud to say that I, as well as my other colleagues from the Central Banks of the EFSE partner countries, are all members of the EFSE Advisory Group. As such, we are involved in EFSE’s work.