Protecting Banks from Liquidity Shocks: The Role of Deposit Insurance and Lending of Last Resort
This paper reviews the literature on the two arrangements that most countries adopted to protect banks from liquidity shocks, a lender of last resort and deposit insurance, and compares the design of these arrangements across countries. The paper ends with a brief summary of both the key lessons learned about the design of these arrangements and the issues related to them that remains unanswered.
|This book is provided by South East Asian Central Banks (SEACEN) Research and Training Centre in its series Occasional Papers with number occ36 and published in 2002.|
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