Lender of Last Resort Functions and Crisis Management

The **Lender of Last Resort (LOLR)** function is one of the most critical and high-stakes responsibilities of a central bank, providing emergency liquidity to solvent institutions facing severe, short-term funding crises. This course provides a comprehensive framework for understanding and executing the LOLR function, differentiating it from bank resolution. Participants will delve into the classic Bagehot principles, the modern policy framework for **Emergency Liquidity Assistance (ELA)**, the complexities of collateral management under duress, and the vital governance and communication strategies required to manage systemic crises effectively while mitigating moral hazard.