Central banks need non-bank liquidity ‘toolbox’, says IMF

Fund says central banks should act as lender of last resort to systemically important non-banks

International Monetary Fund Headquarters 2, Washington, DC
International Monetary Fund Headquarters 2, Washington, DC
Photo: John Harrington

Central banks need to develop better tools for providing emergency liquidity to non-bank financial intermediaries (NBFIs), the International Monetary Fund says.

The fund’s recommendations include granting systemic non-banks access to lender-of-last-resort (LOLR) facilities, an option central banks have historically tended to avoid.

But vulnerabilities among NBFIs – including asset managers, insurers and pension funds – have risen in the past decade. At the same time, non-banks are now “vital

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account