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Finance Dictionary and Glossary of Investment Terms
Lender of Last Resort
Definition 1.
An institution, usually a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty.
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Definition 2.
Traditionally the Federal Reserve Bank in the U.S., which assists banks that face large withdrawals of funds and in so doing stabilizes the banking system.
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Definition 3.
A function of a central bank, such as the Federal Reserve, in which it lends money to a bank which is facing unusually heavy withdrawals.
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