The focus of the Bank's work is making sure that key systemic risks are identified, and establishing minimum standards to control that risk. With these risk-control standards in place, the private sector operators of the system can find the most efficient way to meet them. Second, we provide liquidity, both on a routine basis and in times of system-wide financial stress.
An appropriate amount of liquidity helps to keep markets operating smoothly, and is thus vital to the stability and efficiency of the financial system. On a routine basis, the Bank provides overnight credit to financial institutions to cover any temporary shortfalls that arise in the payments system.