Independence, liquidity and a level playing field – yet another impossible trinity?

Walter Bagehot urged the Bank of England to offer unlimited lending at high rates against good collateral

Bagehot's Lombard Street is still compulsory reading for central bankers because of its description of how a crisis evolves and what central bankers should do as lenders of last resort. However, since the financial crisis, central banks and regulators have become increasingly concerned about the potential moral hazard dimensions of Bagehot's advice. The Basel III agreement includes an

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 [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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 here: