Search: lender
RBA Glossary definition for lender
lender – A person or institution which provides loans on agreed terms to borrowers.
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Theoretical Approaches to Lender-of-last-resort Policy
31 Dec 2001
RDP
2001-07
A lender-of-last-resort facility, however, involves some costs, particularly moral hazard costs. ... Bagehot advocated that, in operating a lender-of-last-resort facility, a central bank should:.
https://www.rba.gov.au/publications/rdp/2001/2001-07/theoretical-approaches-to-lender-of-last-resort-policy.html
Introduction
31 Dec 2001
RDP
2001-07
Lender-of-last-resort policy aims to counter the potential for market failure to cause solvent banks to fail due to liquidity constraints. ... By providing such protection, however, the lender of last resort risks undermining market discipline of banks'
https://www.rba.gov.au/publications/rdp/2001/2001-07/introduction.html
Conclusion
31 Dec 2001
RDP
2001-07
Bagehot argued that a lender of last resort should clearly state its willingness to lend. ... troubled financial institutions is an important adjunct to the lender of last resort.
https://www.rba.gov.au/publications/rdp/2001/2001-07/conclusion.html
References
31 Dec 2001
RDP
2001-07
Guttentag J and R Herring (1983), ‘The Lender of Last Resort Function in an International Context’, Princeton Essays in International Finance, No 151. ... Quinn B (1993), ‘Principles of Lender of Last Resort’, Central Banking, 3(4), pp 17–19.
https://www.rba.gov.au/publications/rdp/2001/2001-07/references.html
The Deregulated Era
31 Dec 2001
RDP
2001-07
The Campbell Report also set out detailed recommendations for the conduct of lender-of-last-resort policy. ... Nevertheless, in principle, a lender-of-last-resort loan could be made to any institution supervised by APRA.
https://www.rba.gov.au/publications/rdp/2001/2001-07/deregulated-era.html
The 1970s
31 Dec 2001
RDP
2001-07
not otherwise have been met by the market, the Reserve Bank was acting as lender of last resort.
https://www.rba.gov.au/publications/rdp/2001/2001-07/1970s.html
The 1930s Depression
31 Dec 2001
RDP
2001-07
question’. 1931 was the first time the Commonwealth Bank was called upon to act as a lender of last resort. ... The failure of the NSW Government's guarantee to prevent the closure of the Government Savings Bank highlights the fact that a credible
https://www.rba.gov.au/publications/rdp/2001/2001-07/1930s-depression.html
The 1890s Depression
31 Dec 2001
RDP
2001-07
Four main factors hindered the Associated Banks' ability to act as an effective lender of last resort: competition between banks, doubts about the fundamental solvency of those banks that suspended payment,
https://www.rba.gov.au/publications/rdp/2001/2001-07/1890s-depression.html
Proposals for Government Note Issue and the Development of a Central Bank
31 Dec 2001
RDP
2001-07
Under these proposals, the government bank would have been empowered to act as lender of last resort (Gollan 1969; Griffiths 1930).
https://www.rba.gov.au/publications/rdp/2001/2001-07/proposals-for-government-note-issue-and-the-development-of-a-central-bank.html
A History of Last-resort Lending and Other Support for Troubled Financial Institutions in Australia
1 Oct 2001
RDP
2001-07
Research Discussion Papers contain the results of economic research within the Reserve Bank
https://www.rba.gov.au/publications/rdp/2001/2001-07.html