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
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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