The Federal Reserve’s Action to primary Dealers as a Lender of Last Resort during the Financial Crisis of 2007∼2009: Implication for Bank of Korea

2021 ◽  
Vol 35 (1) ◽  
pp. 71-111
Author(s):  
Seungyeon Won
Keyword(s):  
Financial Crisis ◽  
Lender Of Last Resort

FINANCIAL CRISIS RESOLUTION - THE STATE AS A LENDER OF LAST RESORT?

2009 ◽  
Vol 29 (3) ◽  
pp. 47-52 ◽  
Author(s):  
Charles B. Blankart ◽  
Erik R. Fasten
Keyword(s):  
Financial Crisis ◽  
The State ◽  
Lender Of Last Resort ◽  
Crisis Resolution

THE FINANCIAL IMPACT OF LENDER-OF-LAST-RESORT BORROWING FROM THE FEDERAL RESERVE DURING THE FINANCIAL CRISIS

2016 ◽  
Vol 39 (2) ◽  
pp. 179-206 ◽  
Author(s):  
Benjamin M. Blau ◽  
Scott E. Hein ◽  
Ryan J. Whitby
Keyword(s):  
Financial Crisis ◽  
Federal Reserve ◽  
Financial Impact ◽  
Lender Of Last Resort

scholarly journals Developments in Monetary Policies before and after the Recent Financial Crisis and the Change in the Role of Central Banks

2014 ◽  
Author(s):  
Zekayi Kaya ◽  
Erkan Tokucu
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Financial Stability ◽  
Policy Instruments ◽  
Central Banks ◽  
Price Stability ◽  
Lender Of Last Resort ◽  
Monetary Policies ◽  
Recent Financial Crisis

During the historical process, application of the monetary policies and the roles of the central banks have changed within the framework of the developments in the world economy, problems encountered and the economic policies as a solution to these problems. The financial crises after 1990 and the recent financial crisis as the biggest experienced one after 1930s, caused an increase in the importance of the task of providing financial stability besides price stability and in this context in the function of “lender of last resort” of the central bank. The crisis required using new policy instruments in addition to interest rate instrument which was not sufficient enough in providing financial stability and the roles of the central banks in providing financial stability changed. In this study, applications of monetary policies and the changing role of the central banks will be examined. Within this framework, traditional and non-traditional instruments will be explained and the problems that can be confronted by a central bank when providing price stability besides financial stability will be remarked.

Central banks

2015 ◽  
Author(s):  
Willem H. Buiter
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Credit Risk ◽  
Financial Institutions ◽  
Central Banks ◽  
Structural Reform ◽  
Lender Of Last Resort ◽  
Advanced Economies ◽  
Central Bankers ◽  
Clear Line

The economic and political importance of central banks has grown markedly in advanced economies since the start of the Great Financial Crisis in 2007. In this article it is argued that the preservation of the central bank’s legitimacy and independence requires that a clear line be drawn between the central bank’s provision of liquidity and the Treasury’s solvency support for systemically important financial institutions. Central banks should not be materially involved in regulation and supervision of the financial sector. All activities of the central bank that expose it to material credit risk should be guaranteed by the Treasury. In addition, central banks must increase their accountability by increasing the transparency of their lender-of-last-resort and market-maker-of-last resort activities. Central banks ought not to engage in quasi-fiscal activities. Finally, central banks should stick to their knitting and central bankers should not become participants in public debates and deeply political arguments about matters beyond their mandate and competence, including fiscal policy and structural reform.

scholarly journals Liquidity of Czech and Slovak commercial banks

2012 ◽  
Vol 60 (7) ◽  
pp. 463-476 ◽  
Author(s):  
Pavla Vodová
Keyword(s):  
Financial Crisis ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Annual Reports ◽  
Lender Of Last Resort ◽  
Liquidity Crises ◽  
Lending Activity ◽  
The Impact

As liquidity problems of some banks during global financial crisis re-emphasized, liquidity is very important for functioning of financial markets and the banking sector. The aim of this paper is therefore to evaluate comprehensively the liquidity positions of Czech and Slovak commercial banks via different liquidity ratios in the period of 2001–2010 and to find out whether the strategy for liquidity management differs by the size of the bank. We used unconsolidated balance sheet data over the period from 2001 to 2010 which were obtained from annual reports of Czech and Slovak banks. The sample includes significant part of Czech and Slovak banking sector (not only by the number of banks, but also by their share on total banking assets). We have calculated five different liquidity ratios for each bank in the sample. The results showed that liquidity of Czech banks has declined during last ten years. On the contrary, liquidity of Slovak banks fluctuated only slightly during the period 2001–2008. Bank liquidity has fallen due to the financial crisis in both countries; the impact is worse for Slovak banks. Both Czech and Slovak banks have become less liquid also as a result of increase in lending activity. Czech and Slovak banks have the same strategies how to insure against liquidity crises: big banks rely on the interbank market or on a liquidity assistance of the Lender of Last Resort, small and medium sized banks hold buffer of liquid assets.

scholarly journals The Lender of Last Resort Function after the Global Financial Crisis

2016 ◽  
Vol 16 (10) ◽  
pp. 1 ◽  
Author(s):  
Marc Dobler ◽  
Simon Gray ◽  
Diarmuid Murphy ◽  
Bozena Radzewicz-Bak ◽  
◽  
...  
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Lender Of Last Resort ◽  
The Global Financial Crisis
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