Costs of lender of last resort
{"Image DocumentName": "Costs of lender of last resort", "Image ImageDescription": "Liquidity assistance may lead to support for insolvent, leading to direct costs for central bank and Ministry of Finance. Reduces need for banks to hold liquidity as risk passed to central bank. May allow uninsured depositors to exit bank. Increases moral hazard/risk taking as well as weakening market discipline. Removes pressure on regulators to close failing banks promptly. Difficulty of too-big-to-fail. Conflicts with monetary policy regime \u2013 and fiscal if Ministry of Finance guarantees. Unresolved problem of cross border banks (EU)", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}