We will therefore continue to carefully monitor whether the banking sector is able to maintain a sufficient level of robustness and appropriately provide financial intermediation functions. While governments and central banks have been focused on current crisis management, the G20 Summit and many other fora have seen vigorous discussions of policies that will prevent recurrence of financial crisis.
When there is a clear market failure and a major disruption to financial stability, a central bank – depending on circumstances – may wish to relieve liquidity pressures on the financial system by doing one or more of the following.