Lender of last resort function essential: Norges Bank’s Qvigstad
Jan Qvigstad, the deputy governor of the Norges Bank on 18 November said the financial crisis showed that central banks' lender of last resort function continued to be of the utmost relevance and importance.
Speaking at the Norges Bank Symposium, Qvigstad quoted Walter Bagehot, saying: "To avert panic, central banks should lend early and freely (without limit), to solvent firms, against good collateral, and at high rates."
Qvigstad said the financial crisis illustrated that central banks had an
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