The BCL has been responsible for the supervision of global liquidity and the individual liquidity position of each market operator since the enactment of the law of 24 October 2008. Liquidity risk is the risk where operations carried out on capital markets cannot be concluded or can only be concluded in poor conditions because of shallow markets or financial turbulences. The regulation of liquidity is particularly important for the central bank as it can contribute to preventing a failure in the system, thus also limiting systemic risk.
The BCL is also endowed, by the law of 24 October 2008, with a national competence to grant, in case of exceptional circumstances, short-term loans to its counterparties.
Furthermore, the BCL maintains sustained contacts with actors of the financial centre, thereby contributing to both its development and its sound functioning. The BCL notably organises, or participates in, a certain number of committees and advisory bodies.
Finally, the BCL plays an important role in the field of financial stability and banking supervision at a European level, particularly through its participation in the work of the European System of Financial Supervision and the Supervisory Board of the Single Supervisory Mechanism.