First, institutions that have access to the safety net should be restricted to certain core activities that the safety net was intended to protect  2  BIS central bankers’ speeches  – making loans and taking deposits – and related activities consistent with the presence of the safety net.
Second, the shadow banking system should be reformed in its use of money market funds and short-term repurchase agreements – the repo market. This step will better assure that the safety net is not ultimately called upon to bail them out in crisis.