Lending against adequate collateral is one of the main ways in which major central banks can provide liquidity. If such lending is conducted on the basis of a carefully designed collateral management framework (with eligibility criteria and risk control measures being of particular importance), central banks can continue to inject considerable amounts of liquidity into the system without necessarily exposing themselves to additional risk.
Christine Lagarde: ECB press conference - introductory statement Introductory statement by Ms Christine Lagarde, President of the European Central Bank, and Mr Luis de Guindos, Vice-President of the European Central Bank, Frankfurt am Main, 27 October 2022. ***  1/1  BIS - Central bankers' speeches