Holding portfolio of foreign reserves for intervention purposes (s 24) Intervening in the foreign exchange market for monetary policy purposes (s 16, s 17, s 18)  Correction  Primary function is maintaining price stability (s 8) Impose prudential requirements upon banks (Part 5); ability to alter conditions of registration on banks (s 74); powers to give bank directions (s 113) Acting as lender of last resort (s 31)  Crisis Management  Statutory management (s 117) powers to give bank directions (s 113) Foreign exchange intervention (s 16, s 17, s 18)  Prevention Most of the Reserve Bank's activities are aimed at preventing financial crises and thus promoting financial stability.
Issuing of government paper and Treasury Bills The RBM is vested with the responsibility of issuing Local Registered Stocks and Treasury Bills as a way of raising resources for Government to augment its revenues. The Bank also underwrites i.e. meets the difference in case of under subscriptions from the financial sector, the parastatals and the private sector. 4.