LOLRLender of Last Resort
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Section 3 describes the policies that can mitigate or eliminate such market failures, including LOLR policies, capital requirements, liquidity requirements, and their interactions.
Sheikh Mohamed Elgari highlighted key characteristics of an effective LOLR mechanism and provided his critique on the currently practiced Shari'ah-compliant LOLR structures.
In a speech at the National Bureau of Economic Research, Bernanke (2013) recognized the Fed's responsibility to serve as LOLR.
While there is substantial disagreement among policymakers, analysts, and academics as to whether the Fed stretched this principle to insolvent firms, there is little disagreement that the LOLR was used widely throughout the crisis.
It is proposed that only scheduled banks, including branches of foreign banks, be eligible counterparts for LOLR support and that all NBFIs be excluded from access.
What are the features of the conflict between consolidation and effective execution of the LOLR function?
Moreover, as the Argentine crisis has most strongly revealed, the self-imposed role of the IMF as the world's LOLR has done little to address the institutional weakness involved in managing transnational debt.
Admitting a role for the central bank as a LOLR raises the question of the gains from linking this function with prudential supervision.
Enoch, Stella and Khamis distinguish between ex ante and ex post transparency, and argue that some ex ante discretion in the operation of LOLR facilities, balanced by sanctions on those who are responsible for the bank's distress, should be combined with ex post transparency in which the regulators would have to make full disclosure of their intervention (e.
And should such a LOLR role be accompanied by supervisory powers for the central bank to contain moral hazard?
Tambien me parece razonable el apartado i), que permite la inscripcion de cualquier entidad considerada inscribible por los Acuerdos con el Estado, pues no solamente es una clausula abierta, sino amplia, ya que no distingue entre los Acuerdos de cooperacion ex articulo 7 de la LOLR y los Acuerdos con la Santa Sede.
But once the LOLR becomes a matter of central bank policy, what should that policy be?