A lender of last resort provides liquidity in a crisis to banks (and to the market as a whole) when there is no alternative. This summer the way that each central bank operates in normal times determined how it was able to act in the crisis. Central-bank lending is secured: borrowers must provide collateral, as well as interest, in return for cash. One reason the ECB could lend liberally was because it accepts a wide range of collateral, including corporate and asset-backed bonds.

基于1个网页-相关网页