{
  "title": "Some New Directions for Financial Stability?",
  "publication": "per Jacobson lecture, September 30, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/miscellaneous-publication-other/issues/2016/12/31/some-new-directions-for-financial-stability-17585",
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  "summary": "This paper presents the functional responsibilities of a central bank which is required to maintain systemic financial stability without having supervisory oversight of individual financial institutions.",
  "sections": [
    {
      "heading": "Central bank functional responsibilities (overview)",
      "content": "- Central bank required to maintain systemic financial stability without supervisory oversight of individual financial institutions.\n- Financial Services Authority (FSA) has responsibility for supervising individual financial institutions, while the central bank retains other key system-wide responsibilities."
    },
    {
      "heading": "Payments system and market infrastructure oversight",
      "content": "- Central bank responsibility includes the smooth running of the domestic payments system.\n- By extension, oversight of the structure and soundness of clearing and settlement systems for:\n  - the main financial markets,\n  - money and bond markets,\n  - the foreign exchange market,\n  - the equity market."
    },
    {
      "heading": "Contingency planning and operational resilience",
      "content": "- A prominent associated function (heightened by 9/11) is contingency planning against major physical disruption of markets caused by terrorism or natural causes."
    },
    {
      "heading": "Liquidity provision and lender-of-last-resort (LOLR) actions",
      "content": "- Central bank provides injections of liquidity:\n  - to the financial system as a whole via open market operations, or\n  - via lender-of-last-resort (LOLR) actions to individual institutions.\n- Policy trade-off highlighted: LOLR operations to individual institutions might put taxpayers’ money at risk."
    },
    {
      "heading": "Subjects and keywords covered",
      "content": "- Asset and liability management\n- Banking; Commercial banks\n- Financial crises; Financial institutions\n- Financial regulation and supervision\n- Financial sector policy and analysis; Financial sector stability\n- Liquidity indicators; Liquidity management; Liquidity risk\n- Additional keywords: capital value, fair value accounting, monetary policy committee, Per Jacobsson Foundation lecture, Iron Curtain speech, value, Eastern Europe, Europe, Global, MISC PUBS, Misc.\n\n---\n\n\nSource: https://www.imf.org/en/publications/miscellaneous-publication-other/issues/2016/12/31/some-new-directions-for-financial-stability-17585"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/miscellaneous-publication-other/issues/2016/12/31/some-new-directions-for-financial-stability-17585/index.md)",
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    "Published: September 30, 2004",
    "Series: per Jacobson lecture",
    "DOI: https://doi.org/10.5089/9781451980868.028",
    "Central bank required to maintain systemic financial stability without supervisory oversight of individual financial institutions.",
    "Financial Services Authority (FSA) has responsibility for supervising individual financial institutions, while the central bank retains other key system-wide responsibilities.",
    "Central bank responsibility includes the smooth running of the domestic payments system.",
    "By extension, oversight of the structure and soundness of clearing and settlement systems for:",
    "A prominent associated function (heightened by 9/11) is contingency planning against major physical disruption of markets caused by terrorism or natural causes.",
    "Central bank provides injections of liquidity:",
    "Policy trade-off highlighted: LOLR operations to individual institutions might put taxpayers’ money at risk.",
    "Asset and liability management",
    "Banking; Commercial banks",
    "Financial crises; Financial institutions",
    "Financial regulation and supervision",
    "Financial sector policy and analysis; Financial sector stability",
    "Liquidity indicators; Liquidity management; Liquidity risk",
    "Additional keywords: capital value, fair value accounting, monetary policy committee, Per Jacobsson Foundation lecture, Iron Curtain speech, value, Eastern Europe, Europe, Global, MISC PUBS, Misc."
  ],
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  "generatedAtUtc": "2026-09-21T17:43:24.712Z"
}