In addition, we are all looking at whether any further structural reforms could be made to improve the resilience of the financial system and minimize the likelihood that our extraordinary tools will be needed in the future.9 The main point is that when central banks provide liquidity, we have to do so in ways that don’t encourage market participants to take undue risks in normal times.
Our actions must be targeted at specific issues and scaled back as those are resolved. Adjusting as market conditions improve That is why we gradually adjusted our facilities as conditions improved. In the autumn, we wound down a couple of facilities, including the program to support markets for bankers’ acceptances.