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:
“While I shall not vote for the prohibition amendment, I would like to see a good, wholesome expression of temperance sentiment.... Personally I do not resort to force—not even the force of law—to advance moral reforms. I prefer education, argument, persuasion, and above all the influence of example—of fashion.”
—Rutherford Birchard Hayes (1822–1893)
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