5 Note that Bagehot did not differentiate between deposit-taking institutions and market makers, stipulating only that the lending should be collateralized with "good securities." However, the idea that central banks should support the functioning of a broader range of markets through direct liquidity support is relatively new.
Previously, it was believed that central banks could adequately support markets by allocating liquidity through banks, by altering liquidity in payments systems, or by changing the stance of monetary policy, and that this liquidity would flow unimpeded through the financial system. The events of last summer have challenged this consensus.