‘Lenders of last resort’ need to incentivise firms to hold more liquidity

By Justin Pugsley
BRR fallback image

Expanding the lender of last resort function to tackle financial distress is likely to work better when financial firms are incentivised to manage their liquidity risks in a socially responsible way.

This can be done through a variety of mechanisms and rules imposed on financial firms, according to a paper ...

To continue reading
Request Free Trial

  • Unlimited access to all content.
  • Email alerts highlighting key industry insight.
  • Invitations to attend exclusive roundtables and events.

Read Next:

internal audit
Analysis, Risk Management
May 29, 2024

EU banks’ internal audit functions fall short, says ECB

European banks' internal audit function has escaped censure, until now
Read more