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Journal of Financial Intermediation Vol. 19 No. 2 2010

Lender of last resort policy: What reforms are necessary?

Jorge Ponce1,2

1 Toulouse School of Economics · 2 Banco Central del Uruguay

Abstract

The Northern Rock bailout has raised concerns about the ability of current supervisory arrangements to deal with banking crises. This paper uses a formal model of a lender of last resort to derive policy implications regarding the optimal allocation of decision-making authority. Thereby, it contributes to the policy debate in the United Kingdom by proposing reforms to the current supervisory arrangements.

DOI
10.1016/j.jfi.2009.09.002
Volume
19
Issue
2
Pages
188-206
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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