Some corners of non-bank intermediation should have a liquidity backstop, argues Sirio Aramonte, a principal economist with the Federal Reserve Board, in a paper published in October.

He suggests facilitating central clearing and optimising liquidity regulations, improving risk management, lowering pro-cyclicality in regulatory requirements, and using central bank balance sheets in episodes of widespread market stress.

Aramonte writes: “After the global financial crisis, the liquidity-supply