TAILIEUCHUNG - Lecture Legal and regulatory aspects of banking supervision – Chapter 23

The following will be discussed in this chapter: Lender of last resort, classical theory, LOLR and bank closure policy solvent banks and insolvent banks, systemic risk contagion, liquidity in a non functioning interbank market, LOLR policy as part of the banking safety net. | MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: TWENTY THREE Summary of previous Session Corrective actions for weak Banks General principles for corrective action Guiding principles for banks resolution policy Resolution techniques Conclusion: Dealing with Weak Banks 2 Summary of this session Lender of Last Resort Classical Theory LOLR and Bank closure Policy Solvent banks and Insolvent Banks; LOLR Systemic Risk Contagion Panic of 2008 crisis Liquidity in a non functioning interbank market LOLR policy as part of the banking safety net Lessons for the LOLR’s role Case Example: The State Bank of Pakistan 3 Lender of Last Resort The discretionary provision of liquidity to a financial institution (or the market as a whole) by the central bank in reaction to an adverse shock which causes an abnormal increase in demand for liquidity which cannot be met from an alternative source. 4 Lender of Last Resort (Contd.) This means that the central bank is the .

• Ngân hàng - Tín dụng
• Banking supervision
• Banking operations
• Banking practices globally
• Role of the supervisor
• Banking companies ordinance
• Bank regulation
• Financial supervision
• Banking system
• Mortgage brokers