The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

LENDER OF LAST RESORT Definition & Legal Meaning

Definition & Citations:

National central bank authorized and resourced to be the ultimate credit source. Intended to stabilize the national or regional economy. It extends loans to solvent, illiquid depository institutions to maintain stability. With government backing such loans retain the public’s confidence in the country’s financial system. The IMF is lender of last resort if a central bank gets into difficulties. An emergency can be a run on banks.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.