Lender of last resort/Definition: Difference between revisions
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An institution, that is prepared to lend money to any solvent bank that encounters a serious [[liquidity risk]], or a threatened [[Run (banking)|bank run]]. (The term | An institution, that is prepared to lend money to any solvent bank that encounters a serious [[liquidity risk]], or a threatened [[Run (banking)|bank run]]. (The term has sometimes als been applied to financial assistance to avert [[insolvency]] that could occur for other reasons). | ||
Revision as of 15:03, 28 November 2011
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Lender of last resort [r]: An institution, that is prepared to lend money to any solvent bank that encounters a serious liquidity risk, or a threatened bank run. (The term has sometimes als been applied to financial assistance to avert insolvency that could occur for other reasons).