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 what this word names.

National bank note (ten dollars) — A photograph of what this word 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.

Related terms

central bank bank run panic

Courses where this word appears

B12 History of Banks and Credit B13 Money Used Across Borders E11 Money, Read Through Events P8 Financial Decisions and Psychological Biases

Scenes where this word appears

United States　The age of the wildcat banks　A port town in the panic
United States　The national banking system　New York, Wall Street
United States　The Gold Standard Act of 1900　America, the house of the gold standard
United States　1913　London and Washington
United States　1929　The Federal Reserve System
United States　The weight of being the reserve　The financial district on the night of the crisis
United States　The digital shore　The end of the dollar's route
Britain　The bank of the world　Lombard Street

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