BoE - THE REPERTOIRE OF OFFICIAL SECTOR INTERVENTIONS IN THE FINANCIAL SYSTEM: LAST RESORT LENDING, MARKET-MAKING, AND CAPITAL

PAUL TUCKER
DEPUTY GOVERNOR, FINANCIAL STABILITY, BANK OF ENGLAND
at the Bank of Japan 2009 International Conference
Financial System and Monetary Policy: Implementation
Bank of Japan, Tokyo
27-28 May 2009

2009 INTERNATIONAL CONFERENCE: FINANCIAL SYSTEM AND MONETARY POLICY
IMPLEMENTATION, BANK OF JAPAN, 27-28 MAY 2009
THE REPERTOIRE OF OFFICIAL SECTOR INTERVENTIONS IN THE FINANCIAL
SYSTEM: LAST RESORT LENDING, MARKET-MAKING, AND CAPITAL
Everything – and I mean everything – about central banking stems from our liabilities being the base
money of the economy. From this flow our roles in monetary policy and financial stability. And, in
consequence, the manner in which central banks supply our money – overnight, intra-day, and for term
maturities; in routine and in various stressed circumstances – just could not matter more, even if much
of the time it seems like an obscure corner of the financial system’s plumbing.


Source: http://www.bankofengland.co.uk/publications/speeches/2009/speech390.pdf