• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Sign in Sign up
Upload
united states securities and exchange commission - corporate
united states securities and exchange commission - corporate

... At August 31, 2014, our short-term borrowings consisted of euro-denominated commercial paper of $112 million and euro-denominated bank loans of $34 million with an aggregate weighted-average interest rate of 0.7%. In December 2013, we entered into a five-year $150 million floating rate bank loan due ...
Stock market liquidity and firm value
Stock market liquidity and firm value

... value of equity (Compustat Annual Data #199  Compustat Annual Data #25) plus book value of assets (Compustat Annual Data #6) minus book value of equity (Compustat Annual Data #60) minus balance sheet deferred taxes (Compustat Annual Data #74) ...
Interbank intermediation
Interbank intermediation

... balance sheet. The German interbank market is the largest in the eurozone, and one of the largest worldwide. It is notable not only in terms of its absolute size, but also because interbank lending and borrowing account for a particularly large share of banks’ balance sheets in Germany. Figure 1 sho ...
Endogenous Liquidity and Contagion
Endogenous Liquidity and Contagion

... Related Literature. There are is a vast literature studying market liquidity directly or indirectly. However, we are not aware of any papers that define liquidity via an explicit metric that itself has a clear welfare meaning, or that relate this definition to the different attributes of liquidity, ...
Liquidity Crises, Liquidity Lines and Sovereign Risk December 2015
Liquidity Crises, Liquidity Lines and Sovereign Risk December 2015

... temporarily excluded from the financial markets and cannot issue new debt. Furthermore, a defaulting government cannot rollover its debt accrued from liquidity lines and has to honor these obligations but does not repay its dues from long-term bonds. In order to capture the essence of the discussion ...
Liquidity Squeeze, Abundant Funding and Macroeconomic Volatility
Liquidity Squeeze, Abundant Funding and Macroeconomic Volatility

... 2 To be sure, many assets that banks held on their balance sheet before the crisis -such as asset or mortgage backed securitieswere considered at that time as liquid assets. However, when the crisis happened, these assets quickly became very illiquid. This is why we focus in the definition of liquid ...
Regulation and Market Liquidity - University of British Columbia
Regulation and Market Liquidity - University of British Columbia

... A balanced view of the potential adverse welfare consequences of such provision is summarized in Duffie (2012): “The Agencies’ proposed implementation of the Volcker Rule would reduce the quality and capacity of market making services that banks provide to U.S. investors. Investors and issues of sec ...
Liquidity Hoarding - Federal Reserve Bank of New York
Liquidity Hoarding - Federal Reserve Bank of New York

... illiquid, in the sense that they hold only illiquid assets. At the second and third dates, some bankers receive a random liquidity shock, which we interpret as the demand for payment of a senior debt that can only be discharged by delivery of cash. An illiquid banker who receives a liquidity shock h ...
The information content of market liquidity: An empirical analysis of
The information content of market liquidity: An empirical analysis of

... There is a long history of research on the liquidity and microstructure of equity markets. The early research on equity market liquidity was however done within a market microstructure framework focusing on intra-day patterns and trader behavior in single securities. In recent years there has been a ...
Global Financial Systems Chapter 4 Liquidity
Global Financial Systems Chapter 4 Liquidity

... → securities are more attractive to investors → firms and banks can more easily withstand mismatches between their assets and liabilities → central bankers can conduct open-market operations and ...
Lending-of-last-resort is as lending-of-last-resort does
Lending-of-last-resort is as lending-of-last-resort does

... in case of a systemic liquidity crisis. The operational framework of the ECB and the European System of Central Banks does not contain any formal reference to the LOLR function. However, in this paper we argue that by providing unlimited liquidity against good collateral, and arguably at a penalty r ...
Network Risk and Key Players: A Structural Analysis of
Network Risk and Key Players: A Structural Analysis of

... be measured by the network impulse response function (NIRF) to that bank’s individual shocks. The NIRFs are determined in equilibrium by both the network decay factor φ and the banks’ locations within the system. This novel measure allows us to pin down each bank’s contribution to systemic risk. Th ...
Outside Liquidity, Rollover Risk, and Government Bonds
Outside Liquidity, Rollover Risk, and Government Bonds

... first-best through demand-deposit contracts in the presence of macroeconomic interest rate risk (Hellwig, 1994).7 Under aggregate risk and in the presences of moral hazard, financial intermediaries may not be able to insure firms against liquidity shocks either (Holmström and Tirole, 1998). The cre ...
Lending-of-last-resort is as lending-of-last
Lending-of-last-resort is as lending-of-last

Word - The Open University
Word - The Open University

... If the organisation is large enough, you should seek to fund it from a number of markets rather than just a single market. (Similarly, a large organisation should have relationships, and borrowing facilities, with a number of banks rather than just one or two.) For example, larger organisations will ...
Methodology And Assumptions: Liquidity
Methodology And Assumptions: Liquidity

... qualify for this category. The first three characteristics reference quantitative measures that apply in most industries. In exceptionally stable or volatile industries, however, the relevant "Key Credit Factors" article may specify different standards. Characteristics of a company with exceptional ...
Development of Simulation based Model to quantify the degree of
Development of Simulation based Model to quantify the degree of

... January 2015 that emphasises a strong liquidity framework to support funding. The importance of holding more capital has become the main pre-requisite for Basel III but taking the aftermath of Global Financial Crisis starting at the end of 2007 poses even a greater challenge to all the emerging bank ...
Liquidity stress testing
Liquidity stress testing

... Consistency with solvency scenario • Often contain relevant parameters (e.g. bond prices) ...
View PDF - Cornell Law Review
View PDF - Cornell Law Review

... THREE DISCOUNT WINDOWS Kathryn Judge † ...
Liquidity Crises - Business Review, Second Quarter 2008
Liquidity Crises - Business Review, Second Quarter 2008

... Holmstrom and Tirole suggest that monetary policy could serve this role by easing financing conditions in times of crisis. VERY UNLIKELY CONTINGENCIES CAN AFFECT THE AVAILABILITY OF LIQUIDITY While Holmstrom and Tirole focus on the lack of sufficient liquidity in the private sector as a rationale fo ...
Innovations in the Bank`s provision of liquidity
Innovations in the Bank`s provision of liquidity

... part of their funding is withdrawn before the assets they hold can be realised at their true economic value. Liquidity risk is a standard feature of banking, and responsibility for managing normal day-to-day fluctuations should fall to banks themselves. However, it is inefficient for banks to have t ...
The Lender of Last Resort in the Eurozone
The Lender of Last Resort in the Eurozone

... Regarding liquidity supply, a central bank typically has two options whenever it provides the finance sector with the necessary liquidity. One option is to provide liquidity for the entire system, via its monetary-policy operations (macro-level liquidity supply). The other option is for the central ...
Macroprudential Policy with Liquidity Panics - SIEPR
Macroprudential Policy with Liquidity Panics - SIEPR

... obtain that a feedback from liquidity accumulation can worsen adverse selection in secondary markets. However, he does not focus on financial intermediaries. On the other hand, Boissay et al. (2015) analyze the macroeconomic effects of crises in a financial intermediation sector with endogenous mark ...
Central Bank Tools and Liquidity Shortages
Central Bank Tools and Liquidity Shortages

... FRBNY Economic Policy Review / August 2010 ...
HALCON RESOURCES CORP (Form: 8-K, Received
HALCON RESOURCES CORP (Form: 8-K, Received

... appropriate to make its own credit analysis and decision to enter into the Amended Credit Agreement; (c) agrees that it has made and will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall deem appropriate at ...
1 >

Lender of last resort



The term lender of last resort originates from the French expression dernier ressort. While the concept itself had been used previously, the term, ""lender of last resort"", was supposedly first used in its current context by Sir Francis Baring in his Observations on the Establishment of the Bank of England which was published in 1797. In 1763 the king was the lender of last resort in Prussia. Different definitions of the lender of last resort exist in the literature. A comprehensive one is the following: ""the discretionary provision of liquidity to a financial institution (or the market as a whole) by the central bank in reaction to an adverse shock which causes an abnormal increase in demand for liquidity which cannot be met from an alternative source"". This means that the central bank is the lender (provider of liquidity) of last resort (if there is no other way to increase the supply of liquidity when there is a lack thereof). The function has been performed by many central banks since the beginning of the 20th century. The goal is to prevent financial panics and bank runs spreading from one bank to the next due to a lack of liquidity.
  • studyres.com © 2023
  • DMCA
  • Privacy
  • Terms
  • Report