Emergency Liquidity Assistance (ELA) Frameworks and Protocols

Emergency Liquidity Assistance (ELA) is a critical central banking tool, deployed to provide temporary liquidity support to solvent financial institutions facing exceptional and unexpected funding pressure. As a lender of last resort (LOLR), the ELA framework must be robust, transparent, and legally sound to preserve financial stability without distorting market discipline. This highly policy-focused course provides a comprehensive analysis of the legal, governance, operational, and collateral-related protocols that define an effective ELA program. Participants will dissect the key elements of decision-making under stress, including the "solvency assessment" hurdle, the operational mechanics of ELA provision, and the crucial communication strategy required to manage moral hazard and market reaction during a financial crisis.