- Lender of last resort
If, owing to a temporary shortage of liquidity (e.g. in the case of sudden cash withdrawals), the commercial banks are unable to meet the demand from their customers, this may cause serious disruption of the financial system. In that case, the central bank can intervene in order to provide the banks with the necessary resources. By supervising the financial markets and participating in the development of prudential standards and rules, the National Bank ensures that such crises are avoided as far as possible.