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Past Event

Liquidity and the Role of the Lender of Last Resort

Past Event

Liquidity and the Role of the Lender of Last Resort (Panel 1)

Liquidity is central to the stability of the financial system. A “run on the bank” can kill even sound institutions if they cannot readily find the cash to cover short-term demands. Further, scrambling to find cash can force some players to sell assets at distressed prices and this, in turn, may trigger insolvencies and failures. A key role of central banks is to be a “lender of last resort” in times of crisis to prevent liquidity problems from triggering a full-fledged financial crisis. A resilient financial system needs rules to ensure financial institutions maintain adequate liquidity and that the central banks provide a backstop for crisis situations.

On April 30, the Initiative on Business and Public Policy at Brookings hosted a day-long event addressing these topics. Many high-level experts from industry, academia, and government came together to consider key issues related to liquidity and the lender of last resort, including: the function and liquidity adequacy of banks; the liquidity coverage ratio, net stable funding ratio, and short-term wholesale funding market reform; liquidity needs in the post-crisis world; and liquidity provision for bank resolution.

Agenda

Lunch Keynote

M

Mary John Miller

Former Under Secretary for Domestic Finance - U.S. Department of the Treasury

Liquidity Needs in the Post-Crisis World and Liquidity Provision for Bank Resolution

P

Paul Kupiec

Resident Scholar - American Enterprise Institute

P

Paul Saltzman

President, The Clearing House Association; - Executive Vice President and General Counsel, The Clearing House Payments Company

Closing Keynote Address

Welcome and Opening Remarks

Lender of Last Resort: Examining the Function and Liquidity Adequacy of Banks

C

Charles Calomiris

Henry Kaufman Professor of Financial Institutions - Columbia University

Darrell Duffie

Dean Witter Distinguished Professor of Finance and Shanahan Family Faculty Fellow - Stanford Graduate School of Business

M

Mark Flannery

BankAmerica Professor of Finance - University of Florida

Liquidity Coverage Ratio, Net Stable Funding Ratio and Short-Term Wholesale Funding Market Reform

P

Paul R. Ackerman

Senior Executive Vice President and Treasurer - Wells Fargo & Company

M

Mark E. Van Der Weide

Deputy Director, Division of Banking Supervision and Regulation - Board of Governors of the Federal Reserve System

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