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The Lender of Last Resort Function after the Global Financial Crisis

Author

Listed:
  • Marc C Dobler
  • Simon T Gray
  • Diarmuid Murphy
  • Bozena Radzewicz-Bak

Abstract

The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this paper we focus on, for the most part, the provision of idiosyncratic support, approaching it from an operational perspective; highlighting different approaches adopted by central banks; and also identifying some of the issues that arose during the GFC.

Suggested Citation

  • Marc C Dobler & Simon T Gray & Diarmuid Murphy & Bozena Radzewicz-Bak, 2016. "The Lender of Last Resort Function after the Global Financial Crisis," IMF Working Papers 16/10, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:16/10
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=43643
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    References listed on IDEAS

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    6. Thomas M. Humphrey, 1989. "Lender of last resort: the concept in history," Economic Review, Federal Reserve Bank of Richmond, issue mar, pages 8-16.
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    Cited by:

    1. Donato Masciandaro & Davide Romelli, 2017. "Twin Peaks And Central Banks: Economics, Political Economy And Comparative Analysis," BAFFI CAREFIN Working Papers 1768, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    2. Joost Bats & Jan Willem van den End & John Thoolen, 2018. "Revisiting the central bank's lender of last resort function," DNB Occasional Studies 1604, Netherlands Central Bank, Research Department.

    More about this item

    Keywords

    Lender of last resort; Central banks and their policies; collateral; risk control measures; market; lender; liquidity; central bank; Government Policy and Regulation; All Countries;

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