Their modus operandi of aggregating pools of saving from a large number of retail investors and deploying these resources in a variety of financial markets, based on different risk-return preferences simultaneously enhances efficiency, stability and inclusion. It is also relatively easy for them to be transparent about both their strategies and outcomes. This, of course, is a statement of ideal conditions.
In that context, liquidity management by a financial institution itself, market-level efforts to maintain market liquidity, and proper exercise of the lender of last resort function by a central bank, would be the three indispensable factors.