Let me take a step back to highlight some of the key features of the current liquidity regulation and supervision regime, features that have resulted in significant increases in the liquidity resilience and risk-management capabilities of our largest institutions.
These facilities serve as liquidity backstops so that holders of dollar assets and participants in dollar funding markets can be confident that strains will be eased when these markets come under stress. That assurance, in turn, mitigates the effect of such strains on the flow of credit to U.S. households and businesses.