The point is rather than in the current “new world” in which market and funding liquidity can be highly interdependent, liquidity interventions aiming to ease the impaired functioning of the money market can also alleviate funding liquidity concerns and contribute to prevent that, in extreme cases, protracted illiquidity develops into lack of solvency.
Along these lines, let me explain how central banks have responded to the challenges arising from market turmoil using a combination of operational measures and increased international co-operation. 2 4.