Once we move away from the zero lower bound, this second instrument might continue to be helpful, not simply in providing accommodation, but also as a complement to other efforts on the financial stability front. To see why, recall the central role that maturity transformation – the funding of long-term assets with short-term, run-prone liabilities – can play in propagating systemic instabilities.
BIS Review 140/2007  1  Definition of capital market Before I go and identify this role of the capital market, I would like to ensure that we are all at the same level of understanding of what the capital market mean. Capital is of course money – most of us know that. The market is just like the Suva market.