A lender of last resort is an institution willing to extend credit when no one else will. The term refers especially to a reserve financial institution, most often the central bank of a country, intended to avoid bankruptcy of banks or other institutions deemed systemically important or 'too big to fail'.
Read more about Lender Of Last Resort: Purpose, Retail Lending, Crisis Lending, Criticisms
Famous quotes containing the word resort:
“Before I finally went into winter quarters in November, I used to resort to the north- east side of Walden, which the sun, reflected from the pitch pine woods and the stony shore, made the fireside of the pond; it is so much pleasanter and wholesomer to be warmed by the sun while you can be, than by an artificial fire. I thus warmed myself by the still glowing embers which the summer, like a departed hunter, had left.”
—Henry David Thoreau (1817–1862)