Investor Glossary-lender of last resortInvestor Glossary-lender of last resortInvestor Glossary-lender of last resortInvestor Glossary-lender of last resortInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Lender Of Last Resort

The HTML to link to this page
 

A lender of last resort is a financial institution, such as a nation's central bank, that provides economic relief by bankrolling failing financial infrastructures. A lender of last resort does so by making loans to banks and other qualified institutions. The purpose of the lender of last resort is to alleviate a situation in which banks face immense withdrawals cased by panic and fear of the unknown. As such, the lender of last resort offers protection to individuals and provides an economic boost to banks at times of grave financial instability. In the United States the Federal Reserve acts as the lender of last resort. Conditions that call for functions of the lender of last resort can arise from any economically destabilizing occurrences. Thus, a lender of last resort may step in times of war, natural disasters, economic depression, etc.



Rate this lender of last resort definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, stock split, required rate of return, 144a, option premium, VIX, class C shares, implied volatility, diluted share, average price per share, APR, risk management, deferred revenue, LIBOR, limit order, deferred tax, real GDP, ex-dividend, current ratio, annual return, minority interest, 1031 exchange, stock market close, FICO score, labor relations, per diem, retained earnings, quality assurance, ex-dividend date, FTSE, debt service coverage, liquidity ratio, 401a, command economy, dividends payable, Key Rate Duration, Zero Cost Collar, irrevocable trust, balance sheet, reverse mortgage, open position, 1035 exchange, phantom income, covered put, cancelled check, in escrow, EBITDA, wholly-owned subsidiary, margin rate


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use