So I thought it would be appropriate for me to provide my perspective on credit conditions in our economy and the current crisis. Today, I would like to discuss a three-dimensional view of the flow of credit to households and businesses and describe the evolving role of banks in the U.S. economy.
Should a bank not have sufficient funds in its settlement account to carry out a fund-transfer request, the system will automatically determine whether the bank has any financial instruments available to be pledged as collateral for a Reserve Bank loan.