Such lending can allow banks to meet payment obligations; to avoid "fire sales" of assets, which can disrupt financial markets; and to continue to lend to customers without tightening terms or credit standards, which can limit economic growth.
It is important to note that the ability and willingness of the central bank to provide liquidity may be useful in reducing market  BIS Review 115/2007  1  uncertainty and bolstering investor confidence, even if the actual amount of liquidity provided turns out to be rather modest.