In this case, a central bank taking away market pressure would distort the market, not repair a market imperfection. Also, allowing the price to be determined by competitive forces may have the collateral merit of revealing market information which is certainly of great value to the central bank.
Maintaining an active market for liquidity may be an important pre-condition for the central bank to monitor important variables, such as the evolving market standing of single institutions and the dynamic process by which banks evaluate and price liquidity risk. Finally, let me briefly address the fourth and last issue: the collateral framework.