A lender of last resort is the provider of liquidity to financial institutions that are experiencing financial difficulties. In most developing and developed countries, the lender of last resort is the country's central bank.
The last resort is something you choose only after you've eliminated every other possibility.
phrase. If you do something as a last resort, you do it because you can find no other way of getting out of a difficult situation or of solving a problem.
Abstract. “Lending of last resort” is one of the key powers of central banks. As a lender of last resort, the Federal Reserve (the “Fed”) famously supports commercial banks facing distressed liquidity conditions, thereby mitigating destabilizing bank runs.
The Bureau of Engraving & Printing produces currency and stamps, and the U.S. Mint produces the nation's coins. The Federal Reserve issues Federal Reserve notes and places them in circulation.
The Lender of Last Resort is for schools that are unable to obtain a lender for their students who are eligible to receive a Federal Family Education Loan. The Lender-of-Last-Resort must make subsidized and unsubsidized Federal Stafford loans to any eligible student.
Under the Last Resort Rule, a court should “not pass upon a constitutional question . . . if there is also present some other ground upon which the case may be disposed.” Accordingly, if a court can resolve a case on both constitutional and non-constitutional grounds, the court should do so on non-constitutional ...
A final expedient or recourse to achieve some end or settle a difficulty. For example, If you don't improve, we'll try this new medication as a last resort . This term originally referred to a court of law from which there was no appeal. [
There are four primary categories of resorts: golf resorts & beach resorts, island resorts & lake resorts, mountain resorts & ski resorts, and spa resorts.
The Fed, or the Federal Reserve, the central bank of the United States, is the nation's lender of last resort because it has the ability to support financial institutions in distress by providing them with financial assistance, usually loans, to prevent their collapse and economic contagion.
Examples of as a last resort
Going into hospital is seen as a last resort. As a last resort, he was given adrenaline, injected directly into his heart. A solution might be pruning of argument and result values as a last resort. The final option of doubling back is always available as a last resort in this game.
It requires all peaceful options to be tried before war is permissible. As James Pattison puts it, “last resort is often interpreted literally so that every option short of the use of force must be attempted” before the resort to violence is permissible.
High-powered money is the sum of commercial bank reserves and currency (notes and coins) held by the Public. High-powered money is the base for the expansion of Bank deposits and creation of money supply. A commercial bank's reserves depend upon its deposits.
Moral hazard concerns arise because financial institutions will be more willing to take on credit risk when they know that, should their solvency situation deteriorate, the LOLR will shield them from the costs typically associated with an impaired condition (that is, underprice its lending to the institutions).
The central bank is referred to as the lender of last resort as it saves banks from possible failure and the banking system from a possible breakdown.
A court of last resort is the highest judicial body within a jurisdiction's court system. It is a court with the highest appellate authority, meaning that its rulings are not subject to further review by another court. A court of last resort is often, but not always, referred to as a supreme court.
: something done only if nothing else works.
A court of last resort, often known as a Supreme Court, is usually the highest court. Some states also have an intermediate Court of Appeals. Below these appeals courts are the state trial courts.
to be the only person or thing that might be able to help you, when every other person or possibility has failed: You have to help me - you're my last resort. SMART Vocabulary: related words and phrases.
The obligation, referred to as Carrier of Last Resort (COLR), requires the service provider within a specified area to provide basic phone service to any customer that requests it, including low-income customers.
In situations like that, central banks act as the lender of last resort. Central banks have traditionally held this role because they are primarily the ones responsible for ensuring that financial markets function smoothly and the financial system is stable.
Fed Financial Statements
The Reserve Banks' and LLCs' financial statements are audited annually by an independent public accounting firm retained by the Board of Governors. To ensure auditor independence, the Board requires that the external auditor be independent in all matters relating to the audit.
Key Takeaways
Clearing house funds are monies that pass from one bank to another through the clearing process of the Federal Reserve System.