The Bank plays a major role in influencing macroeconomic conditions through its monetary policy and management of the exchange rate policy. Given a condition of macroeconomic stability, it is up to the other Government agents to do their part to improve things at the micro level.
It is no exaggeration to say that central banks have become the best friends of banks’ liquidity risk managers. Second, central banks have learned that their own financial risk management is crucial if they are to deliver, in a prudent manner, the best possible liquidity support for strained markets and financial institutions.