The project focuses on the central banks role as lender of last resort (LOLR) and the key function it plays in the prevention and management of liquidity crises. In the aftermath of the 2007-2009 global financial crisis (GFC), this role has acquired a new significance. While almost all of the other instruments of the official safety nets have failed to achieve their purposes, the LOLR not only accomplished its objectives but also has become more important.
This role has expanded and its classic principles were relaxed during the past financial crises and the ongoing covid-19 pandemic. Hence, some concerns about the actual validity of the traditional doctrine have been raised. Despite the many benefits that this role provides to the stability of the banking system, there are also some costs and problems asslawnusstflawrociated to it that need to be addressed. She specifically examines the LOLR legal framework in the United Kingdom and the United States of America, she also looks at the international standards with respect to this LOLR role and the liquidity requirements. In particular, Dr Satragno will analyse the question of whether or not this role needs to be regulated more tightly both at the national and the international level.