Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/274114 
Year of Publication: 
2023
Series/Report no.: 
Reports of the Advisory Scientific Committee No. 13
Publisher: 
European Systemic Risk Board (ESRB), European System of Financial Supervision, Frankfurt a. M.
Abstract: 
This report looks backwards to the worldwide use of (enhanced) lender of last resort (LOLR) and market maker of last resort (MMLR) facilities during the global financial and the pandemic crises. It discusses how LOLR and MMLR facilities have worked; looking ahead, it considers what benefits and costs they could generate if authorities felt compelled to use them. Based on this analysis, the report presents a set of desirable attributes for an effective enhanced LOLR and MMLR and identifies two avenues for future macroprudential work. First, there is a strong need for an agreed taxonomy for determining which markets are systemic. And second, there is a need for a better understanding of how to structure facilities to mitigate moral hazard.
Subjects: 
financial market supervision
central bank
lender of last resort
stockbroker
quantitative easing
Euro zone
Persistent Identifier of the first edition: 
ISBN: 
978-92-9472-300-0
Document Type: 
Research Report

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