Lender of last resort policy: what reforms are necessary?

Jorge Ponce

No 2008004, Documentos de trabajo from Banco Central del Uruguay

Abstract: The Northern Rock bail out has raised concerns about the ability of current supervisory systems to deal with banking crisis. This paper provides a formal model of a lender of last resort. I derive the optimal policy, extract policy implications and thereby suggest reforms to the current arrangements in the United Kingdom.Length: 30 pages

Keywords: Lender of last resort policy; central bank; deposit insurance; banking supervision; Northern Rock crisis (search for similar items in EconPapers)
JEL-codes: G21 G28 (search for similar items in EconPapers)
Date: 2008-06-19
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https://www.bcu.gub.uy/Estadisticas-e-Indicadores/ ... 20Trabajo/4.2008.pdf First version, 2008 (application/pdf)

Related works:
Journal Article: Lender of last resort policy: What reforms are necessary? (2010)
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