What it achieves, essentially, is  BIS central bankers’ speeches  5  to create an environment where “normal” macroeconomic management can resume. It is this that generates the recovery. The banking sector supports this process through two channels. First, it facilitates the ability of monetary policy to maintain price stability and help economic growth return to its potential.
Second, it ensures an adequate supply of financing for investment, and an efficient allocation of credit between productive and non-productive firms, thus also supporting potential growth. Let me explain these two points in more detail. Maintaining price stability and closing the output gap The task of stabilising output around its potential to maintain price stability falls within the responsibility of the central bank.