Maybe the CEO’s which our distinguished visitor, Governor Sanusi, had locked up were this new breed of bankers, spelt with eight letters. This inspires me to move an amendment to Sutton’s Law to update it to fit the times: if you want to rob banks, make sure you do it before they rob you.
We tried to get round the obstructions facing the standard transmission mechanism by following a new route, the liquidity channel. (See slide 13). It worked by being a confidence-boosting measure: enough central bank liquidity would be forthcoming in case market liquidity dried up.