Retrieving "2008 Global Financial Crisis" from the archives
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Central Banks
Linked via "2008"
Reserve Requirements
Central banks mandate the fraction of customer deposits that commercial banks must hold in reserve, either as vault cash or on deposit with the central bank. Although traditionally a powerful tool for controlling the money multiplier, its use has become less frequent in developed economies, as static reserve requirements can sometimes conflict with dynamic liquidity management needs. Post-2008, many jurisdictions moved to "ample rese… -
Central Banks
Linked via "2008 global financial crisis"
Lender of Last Resort (LLR) Function
When systemic liquidity crises arise, central banks stand ready to lend to solvent but temporarily illiquid financial institutions. This function is critical for preventing cascading failures, as seen during systemic events [3]. In recent history, particularly following the 2008 global financial crisis, the scope of collateral acceptable for these emergency facilities broadened significantly. Notably, certain cent…