Financial Stability, then and now Let me start by saying that central banks have always had a role in providing stability to financial systems. Some of our tools are in the category of crisis management; others for crisis prevention.
When the financial system comes under stress, a central bank may need to calm financial markets through open market operations or act as the lender of last resort to financial institutions to forestall bank runs. These tools were used effectively by many central banks during the global financial crisis of 2007–09.