Central banks have had an important role in maintaining financial stability through their lender of last resort role. As lender of last resort, the central bank is given enormous power which is normally tempered by a variety of limits. In the most recent crises in both the United States and euro...

Central banks have had an important role in maintaining financial stability through their lender of last resort role. As lender of last resort, the central bank is given enormous power which is normally tempered by a variety of limits. In the most recent crises in both the United States and euro...

Central banks around the world, as custodians of domestic currencies, play important roles and ‘lenders of last resort' (LoLRs). This role can be summarized as central banks lending freely to solvent but illiquid firms against good collateral, at a high rate of interest. In the wake of the...