Liquidity Risk, Central Banks, and Deposit Insurance：流动性风险，中央银行，存款保险.pptVIP

* Objectives: Consider how liquidity risks can cause financial instability and FI insolvencies. Analyze a Central Bank’s role as lender of last resort. Understand how deposit insurance alleviates bank runs but creates a need for bank regulation. Liquidity Risk, Central Banks, and Deposit Insurance Liquidity risk can arise when a FI’s liabilities obligate it to make payments that require liquidation (sale) of its assets. Liquidity risk occurs in many types of FIs. Let us begin by illustrating this phenomenon in context of a depository financial institution (bank). Recall that the typical