Book contents
- Monetary Policy and Central Banking in Korea
- Monetary Policy and Central Banking in Korea
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Boxes
- Preface and Acknowledgements
- Abbreviations
- Part I What Is the Goal of Korean Monetary Policy?
- Part II How Does Money Affect the Korean Economy?
- Part III How Is Monetary Policy Conducted in Korea?
- Part IV How Is Financial Stability Pursued in Korea?
- 10 Financial Crisis and the Role of Government
- 11 Macro-prudential Regulation and Supervision
- 12 Crisis Management and Lender of Last Resort
- Part V What Will Be the Challenge for Future Monetary Policy in Korea?
- References
- Index
12 - Crisis Management and Lender of Last Resort
from Part IV - How Is Financial Stability Pursued in Korea?
Published online by Cambridge University Press: 17 February 2022
- Monetary Policy and Central Banking in Korea
- Monetary Policy and Central Banking in Korea
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Boxes
- Preface and Acknowledgements
- Abbreviations
- Part I What Is the Goal of Korean Monetary Policy?
- Part II How Does Money Affect the Korean Economy?
- Part III How Is Monetary Policy Conducted in Korea?
- Part IV How Is Financial Stability Pursued in Korea?
- 10 Financial Crisis and the Role of Government
- 11 Macro-prudential Regulation and Supervision
- 12 Crisis Management and Lender of Last Resort
- Part V What Will Be the Challenge for Future Monetary Policy in Korea?
- References
- Index
Summary
Along with macro-prudential regulatory and supervisory policy, the BoK performs a vital role as the lender of last resort (LOLR), providing liquidity support to individual institutions and financial markets, in order to ensure financial stability. In the wake of the global financial crisis, the LOLR has become an essential crisis management instrument of the BoK. However, the Korean government has also been active as a LOLR, because the resolution of financial crises required assisting not just illiquid banks but also insolvent ones. This chapter looks at the evolution of the BoK’s role as the LOLR, focusing on the division of labour between the government and the central bank.
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- Monetary Policy and Central Banking in Korea , pp. 286 - 308Publisher: Cambridge University PressPrint publication year: 2022