Has the RBA cracked the liquidity code?

The Reserve Bank's lender-of-last-resort facility strikes a relatively even spread of costs between taxpayers and banks potentially making it an international benchmark for meeting post-GFC liquidity requirements.

The Reserve Bank’s mechanism for providing last-resort liquidity for banks in a crisis has been generating some controversy here but is now drawing attention offshore as a potentially useful approach for regulators as they try to deal with the liquidity risk issues highlighted by the global financial crisis.


SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles