The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier …

During the 2007-09 financial crisis, there were severe reductions in the liquidity of financial markets, runs on the … Reserve, in its role as lender of last resort (LOLR), injected extraordinary amounts of liquidity. In the aftermath, lawmakers … introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails …

Banks are reluctant to tap central bank backup liquidity facilities and use the borrowed funds for loans to the real … bank offers liquidity liberally but on non-concessionary conditions improves over a pure laissez-faire arrangement, where … asset liquidation in the marketplace is the only source of emergency liquidity. But under LOLR banks remain reluctant to …