2  BIS central bankers’ speeches  However, if we look back in time, we see that traditionally, central banks had their minds on financial stability issues. When, in the 19th century, bank deposits began to emerge alongside banknotes, financial soundness became an issue for central banks, because banks operating in a fractional reserve system are susceptible to a bank run.
This is why the function of the central bank as a "lender of last resort" gained importance at the time. Financial panics and bank runs were reoccurring events, particularly during the second half of the 19th century and the early years of the 20th century.