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 and the Role of the Lender of Last Resort (Panel 1)
Liquidity and the Role of the Lender of Last Resort (Panel 2)
Liquidity and the Role of the Lender of Last Resort (Panel 3)
Liquidity and the Role of the Lender of Last Resort (Ben Bernanke Keynote Address)

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

Liquidity and the Role of the Lender of Last Resort (Part 2)

Liquidity and the Role of the Lender of Last Resort (Keynote by Mary Miller)

Liquidity and the Role of the Lender of Last Resort (Part 3)

Liquidity and the Role of the Lender of Last Resort (Keynote by Ben Bernanke)
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
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
Randall D. Guynn
Partner - Davis Polk & Wardwell
Paul Kupiec
Resident Scholar - American Enterprise Institute
Paul Saltzman
President, The Clearing House Association; - Executive Vice President and General Counsel, The Clearing House Payments Company
Marcus Stanley
Policy Director - Americans for Financial Reform
Steven H. Strongin
Head of Goldman Sachs Global Investment Research - Goldman Sachs
Closing Keynote Address
Ben S. Bernanke
Distinguished Senior Fellow - Economic Studies - The Brookings Institution
Welcome and Opening Remarks
Martin Neil Baily
Senior Fellow Emeritus - Economic Studies, Center on Regulation and Markets
Lender of Last Resort: Examining the Function and Liquidity Adequacy of Banks
David Wessel
Director - The Hutchins Center on Fiscal and Monetary Policy
Senior Fellow - Economic Studies
Charles Calomiris
Henry Kaufman Professor of Financial Institutions - Columbia University
Darrell Duffie
Dean Witter Distinguished Professor of Finance - Stanford Graduate School of Business
John C. Dugan
Partner - Covington & Burling
Mark Flannery
BankAmerica Professor of Finance - University of Florida
Liquidity Coverage Ratio, Net Stable Funding Ratio and Short-Term Wholesale Funding Market Reform
Paul R. Ackerman
Senior Executive Vice President and Treasurer - Wells Fargo & Company
Adam Gilbert
Managing Director - JPMorgan Chase & Co.
Marc Saidenberg
Principal - Ernst & Young LLP
Mark E. Van Der Weide
Deputy Director, Division of Banking Supervision and Regulation - Board of Governors of the Federal Reserve System
More Information
To subscribe or manage your subscriptions to our top event topic lists, please visit our event topics page.