lender of last resort

最後の貸し手／ lender-of-last-resort　—　Institutions

The office of lending when no one else will lend.

Twenty-dollar Federal Reserve note (1914 series) — A photograph of the real thing this term names.

National bank note (ten dollars) — A photograph of the real thing this term names.

In a crisis, funds stop flowing even to sound counterparties. If there is an entity that will lend reliably, a bank run can be stopped before it starts. ⚠ However, if people know they "can be bailed out," the number of those who take excessive risks increases.