Timeline for Solvency and liquidity. How to understand them? Should Central Banks only lend to solvent but illiquid banks?
Current License: CC BY-SA 3.0
6 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jul 31, 2020 at 14:02 | comment | added | Henry | One quote from Chapter VII of Lombard Street is "Theory suggests, and experience proves, that in a panic the holders of the ultimate Bank reserve (whether one bank or many) should lend to all that bring good securities quickly, freely, and readily." commonly shortened to something like "Lend freely at a high rate against collateral that would be good in ordinary times" | |
| Aug 12, 2016 at 0:10 | comment | added | The Kaykay | @AlexisL. Great. Did not know that. Thanks for adding the clarification. | |
| Aug 11, 2016 at 21:03 | comment | added | Alexis L. | Very good answer however I don't entirely agree regarding Bagehot (I hope you don't mind me being fussy). If it is true that we can find such a rule in Lombard Street (1873) it is way after H.Thronton's Paper Credit (1802) ... | |
| Aug 11, 2016 at 8:38 | vote | accept | An old man in the sea. | ||
| Aug 7, 2016 at 19:08 | history | edited | The Kaykay | CC BY-SA 3.0 |
deleted 1 character in body
|
| Aug 7, 2016 at 16:41 | history | answered | The Kaykay | CC BY-SA 3.0 |