Among these, the “lender of last resort” (LLR hereafter) function was the most critical that was carried out by central banks amidst the deepening crisis. The importance of the LLR function is underscored by history, and this time around, forceful actions by central banks contributed significantly to avoiding a meltdown of the global financial system and the collapse of real economic activity.
To that end, one of the guiding principles underpinning our work is that the Code should promote a robust, fair, liquid, open and transparent market. A diverse set of buyers and sellers, supported by resilient infrastructure, should be able to confidently and effectively transact at competitive prices that reflect available market information and in a manner that conforms to acceptable standards of behaviour.