lender of last resort

lender of last resort
Traditionally the Federal Reserve Bank in the US, which assists banks that face large withdrawals of funds and in so doing stabilizes the banking system. Bloomberg Financial Dictionary
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A description of the Bank of England, indicating that the Bank is prepared in the money markets to provide cash and liquidity to the market by means of repurchasing bills. Dresdner Kleinwort Wasserstein financial glossary

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lender of last resort ˌlender of ˌlast reˈsort noun lenders of last resort PLURALFORM [countable] BANKING
the central bank of a country which is responsible for controlling the banking system. It is considered as a lender for other banks only when there is no other organization to borrow from:

• The Federal Reserve is a lender of last resort, and banks generally avoid borrowing from it except in extraordinary circumstances.

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   One of the main functions of a central bank is to step in to lend money to troubled financial institutions if they cannot find any other means of raising funds. Acting as lender of last resort, the central bank smoothes over temporary cash-flow shortages and maintains confidence in the financial system. See also Central Bank.

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lender of last resort UK US noun [C] BANKING, FINANCE, ECONOMICS
► a central bank or international organization that lends money to banks or countries in difficult financial periods when they cannot borrow from anywhere else: »

The IMF is known as the lender of last resort to countries in financial trouble.


Financial and business terms. 2012.

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Look at other dictionaries:

  • Lender of last resort — Als Lender of Last Resort („Kreditgeber der letzten Zuflucht“) wird im Finanzwesen eine Institution bezeichnet, die als Kreditgeber oder Garant bei Schuldnern freiwillig oder auf gesetzlicher Grundlage fungiert, wenn hierzu niemand anders mehr… …   Deutsch Wikipedia

  • Lender of last resort — A lender of last resort (LOLR) is an institution willing to extend credit when no one else will.OriginOriginally the term referred to a reserve financial institution that secured other banks or eligible institutions, as a last resort; most often… …   Wikipedia

  • Lender Of Last Resort — An institution, usually a country s central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky or near collapse. In the U.S. the Federal Reserve acts as the… …   Investment dictionary

  • lender of last resort — A country s central bank with responsibility for controlling its banking system. In the UK, the Bank of England fulfils this role, lending to discount houses, either by repurchasing Treasury bills, lending on other paper assets, or granting… …   Big dictionary of business and management

  • lender of last resort — noun Finance 1. a central bank in its capacity to make loans to banks and other eligible institutions in emergency circumstances such as a systemic crisis in the banking system. 2. a financing organisation which will make loans to borrowers who… …  

  • last resort — ► used for talking about something that you only think of doing or using if all other methods fail: »As a last resort, savers could always open an ISA with their current bank or building society. »Experts say warning labels are a last resort when …   Financial and business terms

  • lender of the last resort — /ˌlendə əv ðə ˌlɑ:st rɪ zɔ:t/ noun a central bank which lends money to commercial banks …   Dictionary of banking and finance

  • Кредитор последней инстанции — LENDER OF LAST RESORT Центральный банк страны, который берет на себя роль «банка банков». ЦБ осуществляет кредитование коммерческих банков и учетных домов, если они испытывают дефицит ликвидности в периоды финансовых кризисов. Таким образом, ЦБ… …   Словарь-справочник по экономике

  • Federal Reserve System — FRB and FED redirect here. For other uses, see FRB (disambiguation) and FED (disambiguation). Federal Reserve System …   Wikipedia

  • bank — bank1 /bangk/, n. 1. a long pile or heap; mass: a bank of earth; a bank of clouds. 2. a slope or acclivity. 3. Physical Geog. the slope immediately bordering a stream course along which the water normally runs. 4. a broad elevation of the sea… …   Universalium

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